In: Statistics and Probability
The following equation has been estimated: stack s a t with hat on top =1028.10+19.3 hsize-1.90 hsize_squared-53.29 female-156.26 black+37.87 female*black (6.29) (3.83) (0.53) (4.29) (14.66) (18.15) The variable sat is the combined SAT score, hsize is the size of the students' high school graduating class in hundreds. The variable female is a gender dummy variable equal to 1 for females and 0 otherwise. Another variable black is a race dummy variable equal to 1 for black and 0 otherwise. Robust standard error in the parentheses. (1) Holding hsize fixed, what is the estimated difference in SAT score between nonblack males and black males? (2) Is this estimated difference calculated in (1) statistically significant from 0? Calculate the t statistics. (3) How statistically significant is this estimated difference? (4) Holding hsize fixed, what is the estimated difference in SAT score between black females and nonblack male?