You extract approximately 5,000 observations from the Current Population Survey (CPS) and estimate the following regr AHE = 3.32-0.45 x Age, R² =0.02, SER= 8.66 (1.00) (0.04) where AHE is average hourly earnings, and Age is the individual's age. Given the specification, your 95% confidence interval for the effect of changing age by 5 years is approximately: OA. [$2.32, $4.32]. OB. [$1.86, $2.64]. OC. [$1.35, $5.30]. OR. Cannot be determined given the information provided.

You extract approximately 5,000 observations from the Current Population Survey (CPS) and estimate the following regr AHE = 3.32-0.45 x Age, R² =0.02, SER= 8.66 (1.00) (0.04) where AHE is average hourly earnings, and Age is the individual's age. Given the specification, your 95% confidence interval for the effect of changing age by 5 years is approximately: OA. [$2.32, $4.32]. OB. [$1.86, $2.64]. OC. [$1.35, $5.30]. OR. Cannot be determined given the information provided.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Hypothesis Testing

In statistics, there are two ways to calculate the sample data. One is descriptive statistics and the other is inferential statistics. In descriptive statistics, all of the information is defined through graphs and charts. In inferential statistics, it allows one to test the hypothesis and it is always used to predict the data. Inferential statistics has two main areas: estimating parameters and hypothesis testing. A hypothesis is a statement about the unknown parameter of the population which we want to verify from the information available from the sample. The premise may or may not be true. The estimation of the whole population would be a reasonable way of deciding if the statistical hypothesis is valid. There are two types of hypotheses. They are null hypothesis and alternative hypothesis.

Question

You extract approximately 5,000 observations from the Current Population Survey (CPS) and estimate the following regression function:
AHE= 3.32 -0.45 x Age, R² =0.02, SER= 8.66
(1.00) (0.04)
where AHE is average hourly earnings, and Age is the individual's age.
Given the specification, your 95% confidence interval for the effect of changing age by 5 years is approximately:
OA. [$2.32, $4.32].
B. [$1.86, $2.64].
C. [$1.35, $5.30].
D. Cannot be determined given the information provided.

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