Question

Economics question (ONLY ANSWER PART B, EXPLAIN AND SHOW ALL WORK)

2. We have data on arrests during the year 1986 and other information on 2, 725 men in Califor- nia. Each man in the sample was arrested at least once prior to 1986. The variable narr86 is the number of times the man was arrested during 1986. The variable pony is the proportion (not percentage) of arrests prior to 1986 that led to conviction, avgsen is average sentence length served for prior convictions (zero for most people), ptime86 is months spent in prison in 1986, and qemp86 is the number of quarters during which the man was employed in 1986 (from zero to four). A linear model explaining arrests is: narr86; = Be + Biponvi + B2avgseni + Buptime86; + Buqemp86, +Ui. The results of this regression are reported in the table below. We also know that the Rạ for this model is equal to 0.04219. (Intercept) pony avgsen ptime86 qemp86 Estimate 0.7068 -0.1508 0.0074 -0.0374 -0.1033 Std. Errort value Pr(>It) 0.0332 21.32 0.0000 0.0409 -3.690.0002 0.0047 1.57 0.1160 -4.25 0.0000 0.0104 -9.94 0.0000 (a) Comment on the sign of the coefficient for avgsen. Does it make sense to you? (b) Find SEB3), the standard error associated with the estimated coefficient for ptime86.

Answer 1

As required only part b, please find in the image attached with all the working.

The fornuila to calculate t-value when they clobil coefficient and it's standard error is krown a i и е we рrоblеm values are asta provided with the for - 4.25 =_ 0.0374 setest -0.0374 - - 4:25 0.0088