Question

2. Multiple restriction test You have just been hired at the Center for Disease Control in Atlanta as an econometrician speciR-squared 0.907063 Adjusted R-squared 0.894390 F(6, 44) 114.9692 P-value(F) 3.18e-25 Log-likelihood -262.5545 Akaike criterioHS -509.713 71.6409 ????? 6.13e-09 College -284.812 290.801 ????? 0.3325 Expenditures 0.114296 0.0192201 ????? 3.48e-07 Age>6

0 0
Add a comment Improve this question Transcribed image text
Answer #1

(a) HS, Expenditures and Age > 65 are statistically significant.

coefficient std. error t-ratio p-value
cons 439.285 172.698 2.54366 0.014559
income 0.005538 0.006808 0.813378 0.420381
poverty 185.02 652.611 0.283507 0.778118
HS -462.801 135.031 -3.42737 0.001333
College -450.472 379.835 -1.18597 0.242
Expenditures 0.100872 0.028404 3.551393 0.000927
Age > 65 4447.17 390.724 11.38187 1.06E-14

(b) 89.439% of the variation in the model is explained.

(c) The hypothesis being tested is:

H0: β1 = β2 = β3 = β4 = β5 = β6 = 0

H1: At least one βi ≠ 0

The p-value is 0.000.

Since the p-value (0.000) is less than the significance level (0.05), we can reject the null hypothesis.

Therefore, we can conclude that the model is significant.

(d) The F-test would be used here.

The hypothesis being tested is:

H0: β1 = β2 = 0

H1: At least one βi ≠ 0

Add a comment
Know the answer?
Add Answer to:
2. Multiple restriction test You have just been hired at the Center for Disease Control in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT