Wage B1 B2 educ + €, where = 1. Wage means daily wage measured in dollars. 2. educ means years of education (schooling) The regression output is given below: reg wage educ Source | SS df MS Number of obs = 100 F(2, 97) = 97.14 Model 10000.00 1 5000.00 Prob > F = 0.0000 Residual | 10000.00 98 100.00 R-squared = 0.5000 Adj R-squared = 0.4900 Total | 20000.00 99 200.00 Root MSE = 10.000 wage | Coef. Std. Err. t P>|t| [95% Conf. Interval] educ | 10.0000 _cons | 10.0000 5.0000 10.0000 2.00 0.050 0.0000 20.0000 1.00 0.317 -20.0000 30.0000 Question 11. The regression above has N = 100 data points and we obtain the following estimates: 6₁ = 10, 62 = 10, se (61) = 10, se(b2) = 5, R² = 0.5 Suppose we could increase the sample twenty-five times, N = 2500. Let the new estimates for the larger sample be ô, ô, se(b₁)*, se(b2)*, R2*. According to the theory, what are the values we should expect from these estimates? Mark the CORRECT alternative: (a) We expect 6 < ô₁, but ôž > ô₂ (b) We expect the R² to increase, that is, R²* > R² (c) We expect b ≈ 10, 6½ ≈ 10, se(b₁)* ≈ 5, ŝe(b2)* ≈ 2.5, R²* ≈ 0.5 (d) We expect ≈ 10, ô½ ≈ 10, se(b₁)* ≈ 2, ŝe(b2)* ≈ 1, R²* ≈ 0.5 (e) We expect t-statistics to remain the same, that is, 61/se(b₁)* ≈ 1, ôž/se(b2)* ≈ 2.
Wage B1 B2 educ + €, where = 1. Wage means daily wage measured in dollars. 2. educ means years of education (schooling) The regression output is given below: reg wage educ Source | SS df MS Number of obs = 100 F(2, 97) = 97.14 Model 10000.00 1 5000.00 Prob > F = 0.0000 Residual | 10000.00 98 100.00 R-squared = 0.5000 Adj R-squared = 0.4900 Total | 20000.00 99 200.00 Root MSE = 10.000 wage | Coef. Std. Err. t P>|t| [95% Conf. Interval] educ | 10.0000 _cons | 10.0000 5.0000 10.0000 2.00 0.050 0.0000 20.0000 1.00 0.317 -20.0000 30.0000 Question 11. The regression above has N = 100 data points and we obtain the following estimates: 6₁ = 10, 62 = 10, se (61) = 10, se(b2) = 5, R² = 0.5 Suppose we could increase the sample twenty-five times, N = 2500. Let the new estimates for the larger sample be ô, ô, se(b₁)*, se(b2)*, R2*. According to the theory, what are the values we should expect from these estimates? Mark the CORRECT alternative: (a) We expect 6 < ô₁, but ôž > ô₂ (b) We expect the R² to increase, that is, R²* > R² (c) We expect b ≈ 10, 6½ ≈ 10, se(b₁)* ≈ 5, ŝe(b2)* ≈ 2.5, R²* ≈ 0.5 (d) We expect ≈ 10, ô½ ≈ 10, se(b₁)* ≈ 2, ŝe(b2)* ≈ 1, R²* ≈ 0.5 (e) We expect t-statistics to remain the same, that is, 61/se(b₁)* ≈ 1, ôž/se(b2)* ≈ 2.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
![Wage B1 B2 educ + €, where
=
1. Wage means daily wage measured in dollars.
2. educ means years of education (schooling)
The regression output is given below:
reg wage educ
Source |
SS
df
MS
Number of obs
=
100
F(2, 97)
=
97.14
Model
10000.00
1
5000.00
Prob > F
=
0.0000
Residual |
10000.00
98
100.00
R-squared
=
0.5000
Adj R-squared
=
0.4900
Total |
20000.00
99
200.00
Root MSE
=
10.000
wage |
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
educ |
10.0000
_cons |
10.0000
5.0000
10.0000
2.00
0.050
0.0000
20.0000
1.00
0.317
-20.0000
30.0000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6035f1a2-2c03-490a-9469-88f7b64e730f%2Fc9d28df0-42ed-4cd8-af18-2c6a41d0e8e2%2F0bg3b8j_processed.png&w=3840&q=75)
Transcribed Image Text:Wage B1 B2 educ + €, where
=
1. Wage means daily wage measured in dollars.
2. educ means years of education (schooling)
The regression output is given below:
reg wage educ
Source |
SS
df
MS
Number of obs
=
100
F(2, 97)
=
97.14
Model
10000.00
1
5000.00
Prob > F
=
0.0000
Residual |
10000.00
98
100.00
R-squared
=
0.5000
Adj R-squared
=
0.4900
Total |
20000.00
99
200.00
Root MSE
=
10.000
wage |
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
educ |
10.0000
_cons |
10.0000
5.0000
10.0000
2.00
0.050
0.0000
20.0000
1.00
0.317
-20.0000
30.0000
Transcribed Image Text:Question 11. The regression above has N = 100 data points and we obtain the following
estimates:
6₁ = 10, 62
=
10, se (61) = 10, se(b2) = 5, R² = 0.5
Suppose we could increase the sample twenty-five times, N = 2500. Let the new estimates for
the larger sample be ô, ô, se(b₁)*, se(b2)*, R2*. According to the theory, what are the values we
should expect from these estimates? Mark the CORRECT alternative:
(a) We expect 6 < ô₁, but ôž > ô₂
(b) We expect the R² to increase, that is, R²* > R²
(c) We expect b
≈ 10, 6½ ≈ 10, se(b₁)* ≈ 5, ŝe(b2)* ≈ 2.5, R²* ≈ 0.5
(d) We expect ≈ 10, ô½ ≈ 10, se(b₁)* ≈ 2, ŝe(b2)* ≈ 1, R²* ≈ 0.5
(e) We expect t-statistics to remain the same, that is, 61/se(b₁)* ≈ 1, ôž/se(b2)* ≈ 2.
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