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Aplia for Gwartney/Stroup/Sobel/Macpherson's Microeconomics: Private and Public Choice, 16th Edition, [Instant Access], 1 term (6 months)
16th Edition
ISBN: 9781305648210
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel; David A. Macpherson
Publisher: Cengage Archive
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Chapter 2, Problem 8CQ
To determine
Explain the farmer’s incentive to plant and care Douglas fir tree.
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Suppose that a random sample of 216 twenty-year-old men is selected from a population and that their heights and weights are recorded. A regression of weight on height
yields
Weight = (-107.3628) + 4.2552 x Height, R2 = 0.875, SER = 11.0160
(2.3220) (0.3348)
where Weight is measured in pounds and Height is measured in inches.
A man has a late growth spurt and grows 1.6200 inches over the course of a year. Construct a confidence interval of 90% for the person's weight gain.
The 90% confidence interval for the person's weight gain is ( ☐ ☐) (in pounds). (Round your responses to two decimal places.)
Suppose that (Y, X) satisfy the assumptions specified here. A random sample of n = 498 is drawn and yields
Ŷ= 6.47 + 5.66X, R2 = 0.83, SER = 5.3
(3.7)
(3.4)
Where the numbers in parentheses are the standard errors of the estimated coefficients B₁ = 6.47 and B₁ = 5.66 respectively.
Suppose you wanted to test that B₁ is zero at the 5% level. That is,
Ho: B₁ = 0 vs. H₁: B₁ #0
Report the t-statistic and p-value for this test.
Definition
The t-statistic is
(Round your response to two decimal places)
☑
The Least Squares Assumptions
Y=Bo+B₁X+u, i = 1,..., n, where
1. The error term u; has conditional mean zero given X;: E (u;|X;) = 0;
2. (Y;, X¡), i = 1,..., n, are independent and identically distributed (i.i.d.) draws from
i
their joint distribution; and
3. Large outliers are unlikely: X; and Y, have nonzero finite fourth moments.
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Chapter 2 Solutions
Aplia for Gwartney/Stroup/Sobel/Macpherson's Microeconomics: Private and Public Choice, 16th Edition, [Instant Access], 1 term (6 months)
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