An independent researcher is interested in studying the factors that affects the educational attainment of an individual (Y). For her study she chooses educational attainment of the individual's mother (X1) and the annual income of the individual's family (X2) as regressors. The researcher randomly selects a sample of 250 individuals and estimates the following regression function: Y=9.00 +2.12X₁ +2.12X2. (0.56) (1.54) She wants to test whether or not a change in (✗₁) significantly affects (Y) keeping the annual income of the individual's family constant. The t-statistic for testing the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 will be (Round your answer to two decimal places.) If the researcher uses a 5% significance level, we the null hypothesis. She now includes the educational attainment of the individual's father (X3) as the third regressor in the regression equation. The newly estimated regression equation is: ŷ₁ = 8.51 +1.91X₁ +2.01X2 +0.98X3. (2.20) (2.14) (0.71) With the revised estimates she again tests the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 keeping the annual income of the individual's family and the educational attainment of the individual's father constant. The t-statistic for the test the researcher wants to conduct will be (Round your answer to two decimal places.) Based on the value of the test statistic at the 5% significance level, we the null hypothesis.
An independent researcher is interested in studying the factors that affects the educational attainment of an individual (Y). For her study she chooses educational attainment of the individual's mother (X1) and the annual income of the individual's family (X2) as regressors. The researcher randomly selects a sample of 250 individuals and estimates the following regression function: Y=9.00 +2.12X₁ +2.12X2. (0.56) (1.54) She wants to test whether or not a change in (✗₁) significantly affects (Y) keeping the annual income of the individual's family constant. The t-statistic for testing the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 will be (Round your answer to two decimal places.) If the researcher uses a 5% significance level, we the null hypothesis. She now includes the educational attainment of the individual's father (X3) as the third regressor in the regression equation. The newly estimated regression equation is: ŷ₁ = 8.51 +1.91X₁ +2.01X2 +0.98X3. (2.20) (2.14) (0.71) With the revised estimates she again tests the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 keeping the annual income of the individual's family and the educational attainment of the individual's father constant. The t-statistic for the test the researcher wants to conduct will be (Round your answer to two decimal places.) Based on the value of the test statistic at the 5% significance level, we the null hypothesis.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 2E
Question
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