Consider the linear regression model: log(wage)-DB1+B2 MATH+B3 ARABIC +e where wage is the hourly wage and MATH is you score in Math courses and ARABIC is your score in Arabic courses. You would like to test the hypothesis that MATH and ARABIC have the same effect on log(wage) against the alternative that MATH has a greater weight on log(wage) a. Formally state the null and the alternative hypotheses

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
icon
Concept explainers
Question
100%
Consider the linear regression model: log(wage)-DB1+B2 MATH+B3 ARABIC +e where wage is the hourly wage and MATH is you score in
Math courses and ARABIC is your score in Arabic courses. You would like to test the hypothesis that MATH and ARABIC have the same
effect on log(wage) against the alternative that MATH has a greater weight on log(wage)
a. Formally state the null and the alternative hypotheses
b. The OLS results from a sample of 300 observations are reported below
log(wage)= 2.55+ 0.85 MATH+2.75 ARABIC
R-square= 0.55)
se (1.55) (0.035) (1.25)
Test the hypothesis that you stated in (a) at 5% level given that the cov(b2.b3)%3D0.
Transcribed Image Text:Consider the linear regression model: log(wage)-DB1+B2 MATH+B3 ARABIC +e where wage is the hourly wage and MATH is you score in Math courses and ARABIC is your score in Arabic courses. You would like to test the hypothesis that MATH and ARABIC have the same effect on log(wage) against the alternative that MATH has a greater weight on log(wage) a. Formally state the null and the alternative hypotheses b. The OLS results from a sample of 300 observations are reported below log(wage)= 2.55+ 0.85 MATH+2.75 ARABIC R-square= 0.55) se (1.55) (0.035) (1.25) Test the hypothesis that you stated in (a) at 5% level given that the cov(b2.b3)%3D0.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Correlation, Regression, and Association
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman