Using a sample of 1801 black individuals, the following earnings equation has been estimated: 7.059 + 0.147educ + 0.049experience – 0.201female (.007) In(earnings) = %3D (.135) (.008) (.036) R2 = 0.179; n = 1801 %3D Where the standard errors are reported in parenthesis. a. Interpret the coefficient estimate on female. In answering parts b. – c., you must write down (i) the null and the alternative hypothesis; (ii) the test statistic; (iii) the rejection rule. b. Test the hypothesis that there is no difference in expected earnings between black women and black men. Test the hypothesis against a two-sided alternative, using a 5% significance level. c. Dropping experience and female from the equation gives: 6.703+ 0.151educ In(earnings) : %D (.182) (.012) R2 = 0.179; n = 1801 %3D Are experience and female jointly significant in the original equation at the 5% significant level?
Using a sample of 1801 black individuals, the following earnings equation has been estimated: 7.059 + 0.147educ + 0.049experience – 0.201female (.007) In(earnings) = %3D (.135) (.008) (.036) R2 = 0.179; n = 1801 %3D Where the standard errors are reported in parenthesis. a. Interpret the coefficient estimate on female. In answering parts b. – c., you must write down (i) the null and the alternative hypothesis; (ii) the test statistic; (iii) the rejection rule. b. Test the hypothesis that there is no difference in expected earnings between black women and black men. Test the hypothesis against a two-sided alternative, using a 5% significance level. c. Dropping experience and female from the equation gives: 6.703+ 0.151educ In(earnings) : %D (.182) (.012) R2 = 0.179; n = 1801 %3D Are experience and female jointly significant in the original equation at the 5% significant level?
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter4: Polynomial And Rational Functions
Section4.6: Rational Functions
Problem 11SC: Find the mean hourly cost when the cell phone described above is used for 240 minutes.
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Transcribed Image Text:Using a sample of 1801 black individuals, the following earnings equation has been estimated:
7.059+ 0.147educ + 0.049experience – 0.201female
(.007)
In(earnings) =
(.135)
(.008)
(.036)
R? = 0.179;
n = 1801
%3D
Where the standard errors are reported in parenthesis.
a. Interpret the coefficient estimate on female.
In answering parts b. – c., you must write down (i) the null and the alternative hypothesis; (ii) the
test statistic; (iii) the rejection rule.
b. Test the hypothesis that there is no difference in expected earnings between black women
and black men. Test the hypothesis against a two-sided alternative, using a 5%
significance level.
c. Dropping experience and female from the equation gives:
6.703+ 0.151educ
In(earnings) =
(.182)
(.012)
R :
= 0.179;
n = 1801
Are experience and female jointly significant in the original equation at the 5%
significant level?
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