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In: Statistics and Probability

Sir Francis Galton, a cousin of James Darwin, examined the relationship between the height of children...

Sir Francis Galton, a cousin of James Darwin, examined the relationship between the height of children and their parents towards the end of the 19th century. It is from this study that the name "regression" originated. You decide to update his findings by collecting data from 110 college students, and estimate the following relationship:

studenth = 19.6 + 0.73 × Midparh, R2 = 0.45, SER = 2.0

          (7.2)   (0.10)

where Studenth is the height of students in inches, and Midparh is the average of the parental heights. Values in parentheses are heteroskedasticity robust standard errors. (Following Galton's methodology, both variables were adjusted so that the average female height was equal to the average male height.)

(a) Test for the statistical significance of the slope coefficient.

(b) If children, on average, were expected to be of the same height as their parents, then this would imply two hypotheses, one for the slope and one for the intercept. Test the hypothesis.

(i) Can you reject the null hypothesis that the regression R^2 is zero?

(ii) Construct a 95% confidence interval for a one inch increase in the average of parental height.

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