Consider the two variable regression model: Y = Bo+ B,Edu + B2Exp21 + U. where Y denotes the average monthly income, Edu denotes the number of years of education, Exp denotes the number of years of experience, and u, denotes the error term Suppose the researcher wants to test whether the effect of education on average monthly income and the effect of experience on the average monthly income of an individual are the same or not. So, the test the researcher wants to conduct is Ho: B, = B, vs. H, B, #B2. The hypotheses can be tested by modifying the original regression equation to turn the restriction into a restriction on a single regression coefficient. Suppose the regression function is modified in the following way: Y, = Bo +Y,Edu+ B2W, + u, where y, = B,-B2 and W, = Edu, + Exp2 Since y = B, - B2, the test the researcher wants to conduct will now be Ho: y=0 vs. H,: y 0. Let y, and SE,), denote the estimated slope coefficient of Y, and the standard error of 71, respectively. If SEG,) is 1.14 and y, is 1.75, then the 95% confidence interval for the difference between the coefficients, B, - B2, denoted by y1, is ) (Round your answer to two decimal places. Enter a minus sign if your answer is negative.) v the null hypothesis Ho y=0. Based on the calculated confidence interval, we can say that at the 5% significance level, we will reject fail to reject Enter your answer in each of the answer boxes.
Consider the two variable regression model: Y = Bo+ B,Edu + B2Exp21 + U. where Y denotes the average monthly income, Edu denotes the number of years of education, Exp denotes the number of years of experience, and u, denotes the error term Suppose the researcher wants to test whether the effect of education on average monthly income and the effect of experience on the average monthly income of an individual are the same or not. So, the test the researcher wants to conduct is Ho: B, = B, vs. H, B, #B2. The hypotheses can be tested by modifying the original regression equation to turn the restriction into a restriction on a single regression coefficient. Suppose the regression function is modified in the following way: Y, = Bo +Y,Edu+ B2W, + u, where y, = B,-B2 and W, = Edu, + Exp2 Since y = B, - B2, the test the researcher wants to conduct will now be Ho: y=0 vs. H,: y 0. Let y, and SE,), denote the estimated slope coefficient of Y, and the standard error of 71, respectively. If SEG,) is 1.14 and y, is 1.75, then the 95% confidence interval for the difference between the coefficients, B, - B2, denoted by y1, is ) (Round your answer to two decimal places. Enter a minus sign if your answer is negative.) v the null hypothesis Ho y=0. Based on the calculated confidence interval, we can say that at the 5% significance level, we will reject fail to reject Enter your answer in each of the answer boxes.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
Related questions
Concept explainers
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Question
100%
Transcribed Image Text:Consider the two variable regression model:
Y = Bo+P,Edu+ B2EXP21 + u,
where Y denotes the average monthly income, Edu denotes the number of years of education, Exp denotes the number of years of experience, and u, denotes the error
term.
Suppose the researcher wants to test whether the effect of education on average monthly income and the effect of experience on the average monthly income of an
individual are the same or not So, the test the researcher wants to conduct is Ho: B = 6, vs. H, f,+P2 The hypotheses can be tested by modifying the original regression
equation to turn the restriction into a restriction on a single regression coefficient.
Suppose the regression function is modified in the following way:
Y, Po+Y,Edu, +
B2W +u, where y, =P,-P2 and W, = Edu,, + Exp2i
%D
Since y, = B, - B2, the test the researcher wants to conduct will now be Ho: y=0 vs. H y0. Let y, and SE(y,), denote the estimated slope coefficient of y, and the
standard error of 7, respectively.
is .D
IS
If SE(y,) is 1.14 and y, is 1.75, then the 95% confidence interval for the difference between the coefficients, B,- B,, denoted by y,
(Round your answer to two decimal places. Enter a minus sign if your answer is negative.)
the null hypothesis Ho: y=0.
Based on the calculated confidence interval, we can say that at the 5% significance level, we will
reject
fail to reject
Enter your answer in each of the answer boxes.
P.
DELL
%24
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt