Suppose you have a random sample of 500 individuals working in Canada, including data on hourly wages, years of education, and whether or not they were born in Canada. You estimate the model y = Bo + B1x + 8,D + 8,D * x+u. y refers to the hourly wage measured in dollars. x refers to years of education. Dis a dummy variable, where D=0 refers to people born in Canada and D=1 refers to people born outside of Canada. D*x is an interaction term (D multiplied by x) Suppose the fitted model is ŷ = 4 + 2.60x – 2D – 0.25D + x. If the standard error on the interaction term is 0.5, what would you conclude about whether or not immigrants have a different return to education than non-immigrants? I would reject the null that & = 0 I would fail to reject the null that &, = 0 I would conclude that there is no statistically significant difference in the return to education for immigrants and non-immigrants. I. II. II. I only. Il and III only. III only. OIl only. I and III only.

Suppose you have a random sample of 500 individuals working in Canada, including data on hourly wages, years of education, and whether or not they were born in Canada. You estimate the model y = Bo + B1x + 8,D + 8,D * x+u. y refers to the hourly wage measured in dollars. x refers to years of education. Dis a dummy variable, where D=0 refers to people born in Canada and D=1 refers to people born outside of Canada. D*x is an interaction term (D multiplied by x) Suppose the fitted model is ŷ = 4 + 2.60x – 2D – 0.25D + x. If the standard error on the interaction term is 0.5, what would you conclude about whether or not immigrants have a different return to education than non-immigrants? I would reject the null that & = 0 I would fail to reject the null that &, = 0 I would conclude that there is no statistically significant difference in the return to education for immigrants and non-immigrants. I. II. II. I only. Il and III only. III only. OIl only. I and III only.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

10 Suppose that in a particular state a standardized test is given to all graduating se- niors. Let score denote a student's score on the test. Someone discovers that perfor- mance on the test is related to the size of the student's graduating high school class. The relationship is quadratic: score = 45.6+ .082 class .000147 class², where class is the number of students in the graduating class. (i) How do you literally interpret the value 45.6 in the equation? By itself, is it of much interest? Explain. (ii) From the equation, what is the optimal size of the graduating class (the size that maximizes the test score)? (Round your answer to the nearest integer.) What is the highest achievable test score? (iii) Sketch a graph that illustrates your solution in part (ii). (iv) Does it seem likely that score and class would have a deterministic relationship? That is, is it realistic to think that once you know the size of a student's graduating class you know, with certainty, his or her test…
Candy is a Year 4 full-time undergraduate student majoring in marketing at a private university inHong Kong and she is going to be graduated after the summer break. She has collected some datafrom the Student Careers and Affairs Office (SCAO) related to her job planning.According to the graduate employment surveys conducted for the last two years by the privateuniversity, the average salary earned by the graduates of her programme is constant at around$14,000. Actually, Candy is quite disappointed.In view of this, Candy is considering to participate in an one-year internship program launched by theSCAO after her graduation. In other words, she would enter the job market “formally” one year laterif she joins the internship program. Finally, with the help of the SCAO, she could get an internshipoffer from a famous marketing company in Hong Kong. The monthly salary provided by the companyis $12,000 while a good reference letter would be prepared for the interns completing the…
Consider the following regression estimates (FN2) Linear regression belavg abvavg female married _cons b. 1 wage O C. 5 O d. 4 Robust Coef. Std. Err. 3047845 3150202 2820787 -1.063254 .0693348 -2.751963 .9686236 .2612646 6.699098 .2889831 Number of obs F(4, 1255) Prob > F R-squared Root MSE t P>|t| -3.49 0.001 0.22 0.826 -9.76 0.000 3.71 0.000 23.18 0.000 |||||||||| = = .45606 6.132155 = -1.661197 -.5486894 -3.305361 = = [95% Conf. Interval] 1,260 56.35 0.0000 0.1121 4.3987 assume that MLR 1-6 hold. In the regression above, how many coefficients (including the constant) are statistically significant at the 1% level? a. 3 -.4653108 .687359 -2.198565 1.481187 7.266042
U.S. Population The U.S. population can be modeledby the function y = 165.6x1.345, where y is in thousands and x is the number of years after 1800.a. What was the population in 1960, according tothis model?b. Is the graph of this function concave up or concave down? What does this mean?c. Use numerical or graphical methods to findwhen the model estimates the population to be93,330,000.
Question 19 An economist wants to estimate the relationship between earnings (in thousands of dollars) and years of education. She estimates the model Earnings BO+B1 *Education + E. The following is a portion of her results. Coefficient Standard Error Intercept 15.77 Education 4.21 Which of the following is true? 3.8 1.4 p-value 0.003 0.032 O If education is increased by one year, we predict that earnings will increase by $4,210. O If earnings are increased by $1000, we predict that education will increase by 21 O If education is increased by one year, we predict that earnings will increase by $3200. O If earnings are increased by $1000, we predict that education will increase by .032 years,
om CENGAGE MINDTAP Q Search this co 201 Statistical Inference Hypothesis Testing Prob 2 Chapter 2 Assignment: BA 201 Statistical Inference Hypothesis Testing Prob 2 Chapter 2 Assigment Scre o0% Save Submit Assignment for Grading Questions Problem 06-33 (Hypothesis Tests) Quetion 1 of 1 eBook The national mean annual salary for a school administrator is $90,000 a year. A school official took a sample of 25 school administrators in the state of Ohio to learn about salaries in that state to see if they differed from the national average. Click on the datafile logo to reference the data. DATA file (a) Choose the hypotheses that can be used to determine whether the population mean annual administrator salary in Ohio differs from the national mean of $90,000. Ho:- Select your answer - Hạ:- Select your answer - V (b) The sample data for 25 Ohio administrators is contained in the file named Administrator. What is thep value for your hypothesis test in part (a)? If required, round your answer…
In the Managerial Solution, we estimated a focus group's demand curve for iTunes downloads. The estimated coefficient on price was-413, and the 1-statistic was -12.8. nage d coe ndard Using these values, what is the standard error of this estimated coefficient? est The standard error of the price coefficient is (Enter your response rounded to two decimal places) Suppose we had another focus group sample, ran a regression on that sample, and obtained the same coefficient on price but with a standard error five times as large What can you say about the statistical significance of the price coefficient in this second sample? rt A The price coefficient would be statistically significantly different than zero at the 0.05 confidence level Sulag 50,00 t-Val Stan would be would not be
Differentiate the function. 2x3 y = 7 4x3 dy dx 3. ||
0 100 Frequency 150 200 250 300 350 50 50 The plot below shows in the first panel the distribution of ages across Basketball players at the Olympics. The second shows the distribution of ages across swimmers at the Olympics. Which descriptions below accurately describe the figures. Mark all that apply. Basketball Swimming Frequency 500 1000 1500 15 25 35 45 10 15 20 25 30 35 Age Age 2000 Both distributions exhibit a long-left tail The distribution of ages is relatively similar between basketball players and swimmers, though basketball players are slightly less common at older ages relative to swimmers. There are more swimmers at the Olympics than Basketball players The distribution of ages is relatively similar between basketball players and swimmers, though basketball players are slightly more common at older ages relative to swimmers.
U.S. Population The projected population of theUnited States for selected years from 2000 to 2060 isshown in the table below, with the population givenin millions.a. According to this table, what should the U.S. population have been in 2010?b. Create a new table with x representing the numberof years after 2000 and y representing the numberof millions.c. Use a graphing utility to graph the data from thenew table as a scatter plot.
A car company wants to know the monthly sales made in ($000), based on the brand of vehicle. The data collected was entered on a MINITAB spreadsheet for analysis. Exhibit II below was subsequently generated. Exhibit 2 Model N Mean Median Tri.Mean Std Dev S.E. Mean Hyundai 23 109 135 107.64 * 1.34 Toyota 27 165 124 143.65 9.5 ** Determine the values of * and **. Give the unbiased point estimate for the average monthly earning from Hyundai Give the unbiased point estimate for the variance of monthly earning from Hyundai Assuming normality, construct and interpret a 90% confidence interval for the average monthly earning from Toyota You are required to test at the 5% level of significance the hypothesis that the average monthly earnings on Hyundai Vehicles is equal to $110,000 versus the alternative that it is different from $110,000.
Many of the survey questions focus on the used to pay for college, so the undergraduates in the sur ing for their parents. For example, each participant is asked to report how much of the parent's current income is used to pay for college. Do you think it is wise to combine responses across the parents and undergraduates? Are you fully aware of how much money your parents are spending and borrowing for college? The authors report overall averages and percents in their repon spond. Chapter 6 Introduction to Inference 350 We will also consider this a sample from one population but this is debatable certainly Average college savings fund contribution. One survey question asked ho much money from a college savings fund, such as a 529 plan, is used to pay an answer Nonresponse should ahways be considered as a source of bias. In this case, the nonresponse is very low, so we'll proceed by treating the n1593 sample as EXAMPLE 6.4 for college. Of the 1600 who were surveyed, n= 1593 provided a…