Question

QUESTION 3 Questions 3-6 require information from the following table. TABLE 12.1 Two Stage Least Squares Estimates of the Demand for Cigarettes Using Panel Data for 48 U.S. States Dependent variable: In(Qipagettes) - In(QEigarettes) Regressor (1) (2) (3) In(Printstes) – In(Poesie estes) -0.94** (0.21) -1.34** (0.23) -1.20** (0.20 In(Inc ,1995) - In(Inc ,1985) 0.43 0.53 (0.34) (0.30) 0.46 (0.31) Intercept -0.12 (0.07) -0.02 (0.07) -0.05 (0.06) Instrumental variable(s) Both sales tax and cigarette-specific tax Sales tax 33.70 Cigarette-specific tax 107.20 First-stage F-statistic 88.60 Overidentifying restrictions J-test and p-value 4.93 (0.026) These regressions were estimated using data for 48 U.S. states (48 observations on the 10-year differences). The data are described in Appendix 12.1. The J-test of overidentifying restrictions is described in Key Concept 12.6 (its p-value is given in parentheses), and the first stage F-statistic is described in Key Concept 12.5. Individual coefficients are statistically significant at the *5% significance level or **1% significance level.

Answer 1

Ans:- Yes we can use t test because after running ANOVA for Pairwise comparision we can use t test.