Question

In: Economics

Using a sample of 1801 individuals, (4 Marks) the following earnings equation has been estimated: y...

Using a sample of 1801 individuals,

the following earnings equation has been estimated:

y = 7.059 + 0.147x1 + 0.049x2 - 0.201x3

      (0.135)      (0.008)      (0.007)        (0.036)

Y = expected earnings

X1 = level of education

X2 = years of experience

X3 = female

R2 = 0.179;   n = 1801

Critical value of t is 1.96 at 5% significance level.

where the standard errors are reported in parenthesis.

(a) Interpret the coefficient estimate on female:

(b) Test the hypothesis that there is no difference in expected earnings

between women and men. Test this hypothesis against a two sided alternative, using the 5% significance level.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Using a sample of 1801 black individuals, the following earnings equation has been estimated: ln(earnings )...
Using a sample of 1801 black individuals, the following earnings equation has been estimated: ln(earnings ) = 7.059 + 0.147educ + 0.049experience-0.201female                          (.135)        (.008)             (.007)                       (0.036)          R 2 = 0.179; n = 1801 where the standard errors are reported in parenthesis. Interpret the coefficient estimate on educ Interpret the coefficient estimate on experience: In answering parts (c)-(e), you must write down: (i) the null and alternative hypotheses; (ii) the test statistic; (iii) the rejection rule. Test the hypothesis that educ has no effect on...
The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals...
The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x1) and their gender (x2) (0 if male and 1 if female). Ŷ = 30 + .7x1 + 3x2 Also provided are SST = 1200 and SSE = 384. The test statistic for testing the significance of the model is
The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals...
The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x1) and their gender (x2) (0 if male and 1 if female). Ŷ = 30 + .7x1 + 3x2 Also provided are SST = 1200 and SSE = 384. If we want to test for the significance of the model, the critical value of F at α = .05 is a. 3.33. b. 3.35. c. 3.34. d. 2.96.
4. You have collected weekly earnings and age data from a sub-sample of 1,744 individuals using...
4. You have collected weekly earnings and age data from a sub-sample of 1,744 individuals using the Current Population Survey in a given year. (a) Given the overall mean of $434.49 and a standard deviation of $294.67, construct a 99% confidence interval for average earnings in the entire population. State the meaning of this interval in words, rather than just in numbers. If you constructed a 90% confidence interval instead, would it be smaller or larger? What is the intuition?...
The following equations have been estimated by Ordinary Least Squares (OLS), where Y denotes annual earnings,...
The following equations have been estimated by Ordinary Least Squares (OLS), where Y denotes annual earnings, P job evaluation points, and the subscripts m and f denote male and female respectively: Ym = 5000 + 100Pm Yf = 4000 + 80Pf Assume the average job evaluation score was 300 points in male-dominated jobs and 200 points in female-dominated jobs. What is the average pay in male-dominated jobs and in female-dominated jobs? Use a Oaxaca decomposition to determine the average pay...
QUESTION 4 [27 marks] Suppose the following quarterly earnings (in N$ millions) have been recorded by...
QUESTION 4 [27 marks] Suppose the following quarterly earnings (in N$ millions) have been recorded by Namibia breweries company for the years 2007 to 2010. Year Quarter 2007 2008 2009 2010 1 52 57 60 66 2 67 90 77 82 3 27 75 84 98 4 45 71 63 76 4.1 Compute the 4-period centred moving average for the quarterly sales. [4] 4.2 Compute the seasonal indexes for these quarterly earnings. [10] 4.3 Use the method of least squares...
Using MATLAB: Consider the following Boundary Value Differential Equation: y''+4y=0 y(0)=-2 y(π/4)=10 Which has the exact...
Using MATLAB: Consider the following Boundary Value Differential Equation: y''+4y=0 y(0)=-2 y(π/4)=10 Which has the exact solution: y(x)= -2cos(2x)+10sin(2x) Create a program that will allow the user to input the step size (in x), and two guesses for y'(0). The program will then use the Euler method along with the shooting method to solve this problem. The program should give the true error at y(π/8). Run your code with step sizes of π/400 and π/4000 and compare the errors. Chose...
Using the data on 4137 college students, the following equation was estimated Using the data on...
Using the data on 4137 college students, the following equation was estimated Using the data on 4137 college students, the following equation was estimated by OLS colgpai =β0 +β1hsperci +ui, i=1,2,...,4137 where colgpa is measured on a four-point scale and hsperc is the percentile in the high school graduating class (defined so that, for example, hsperc = 5 means the top 5 percent of the class). Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) 2.9803872 0.0141800 210.2 <2e-16 *** hsperc...
The following regression equation was estimated: Y = -2.0 + 4.6X. Please explain the meaning of...
The following regression equation was estimated: Y = -2.0 + 4.6X. Please explain the meaning of -2 and 4.6. What would be the value of Y if X = 20. Just 20 min
Solve differential equation by using undetermined coefficient method y^''+2y^'+y= 4 sin2x
Solve differential equation by using undetermined coefficient method y^''+2y^'+y= 4 sin2x
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT