to test for individual significance, we need to calculate the t-statistic for each variable and test it with the critical value from the t-table. degrees of freedom = n-k-1 where k is the number of variables, there dof= n-4 =522. It will be a t-test, hence significance level for t-test = 1-1%/2 = 0.995
t- statistic
intercept = 0.1279/0.1059 = 1.2078
educ = 0.0904/0.0075 = 12.0533
exp er = 0.041/0.0052 = 7.8846
exp er2 = 0.00071/0.00012 = 5.9167
critical value = 2.581, if t-statistic > critical value, then
significant, therefore, educ, exp er and exp er2 aer
significant
we conduct F test for joint significance, but need restricted and unrestricted sum of squares for this
residual errors are not normally distributed
the amount of error in the model is not consistent across the full range of your observed data. This means that the amount of predictive ability of the explanatory variables (i.e., as calculated in their beta weights) is not the same across the full range of the dependent variable. It represents a problem of heteroskedasticity, although the OLS estimator remains unbiased, the estimated SE is wrong.
please be detailed in your response :) thank you! 0 pts) You are given the following estimated equation: In(wage) 0.1279+0.0904educ + 0.041 exper-0 (0.1059) (0.0075) (0.0052) (0.00012) R 0.3003 5...
ONLY NEES A,B help please!!! 1II. (10 pts) You are given the following estimated equation In(wage)- 0.3688+0.0852educ + 0.05 teure-0.000994tenue 0.0908) (0.0069) (0.0068) (0.00025) R-0.3294 526 in which: logtwage) log of average hourly wage; educ is the number of years of schooling tenure is the number of years of tenure fenure tenure remure The plot of the residuals against the fitted values from the regression above, is provided below: 2.5 1.5 Fitted values .5 a. With a 1% significance level,...
Need help with stats true or false questions Decide (with short explanations) whether the following statements are true or false a) We consider the model y-Ao +A(z) +E. Let (-0.01, 1.5) be a 95% confidence interval for A In this case, a t-test with significance level 1% rejects the null hypothesis Ho : A-0 against a two sided alternative. b) Complicated models with a lot of parameters are better for prediction then simple models with just a few parameters c)...
III-(15pts) You are given the following estimated equation: log(wage)- 0.18+0.093edu +0.044exp+0.043 female-0.016edu female-0.010exp female-0.00068 exp (0.0001) 0.014) 0.4160 0.003 Std errors (0.132) (0.009) (0.005) (0.196) n-526 R-square With all the variables described as follows: logiwage)-log of average hourly wage: female is a dummy variable equal to 1 if the observed person is a female, and 0 if male; edu female is an interaction variable equal to education 'female; edu is the number of years of schooling exp is the number...
please use R for this problem, provide R codes. Kiplinger's "Best Values in Public Colleges" provides a ranking of U.S. public colleges based on a combination of various measures of academics and affordability. The dataset "EX11-18BESTVAL.csv" includes a sample of 25 colleges from Kiplinger's 2015 report. Let's focus on the relationship between the average debt in dollars at graduation (AveDebt, the response variable) and the explanatory variables Admit (admission rate), GradRate (graduation rate), InCost Aid (in-state cost per year after...
asap i beg u IL. (15pts) You are given the following three estimated models, with all the variables described as in question II Dependent variable: log (wage) educ 0.056** 0.062* 0.049* 0.022) (0.006) (0.022) feduc 0.027 C0.027) 0.021 0.028) married 1.000 0.606 (0.518) (0.466) age 0.032 C0.114) (0.103) (0.116) 0.034 feduc. educ -0.001 (0.002) -0.0003 (0.002) married.age 0.037 0.025 C0.016) (0.014) 0.001 0.001 -0.00000 C0.002) C0.002) C0.002) agesq Constant 5.306**5.218* 5.090*** (1.923) C1.723) C1.932) observations 741 R2 741 0.151 741...
The median wage for economics degree holders is determined by the following equation: log( wage) = Be + B educ + B, exper+ B temure + B.age+ B married + u where educ is the level of education measured in years, exper is the job-market experience in years, tenure is the time spend with the current company in years, age is the age in years and married is a dummy variable indicating if a person is married. 935 reg Iwage...