A study of 16,405 adult daughters of women who immigrated to California from other countries measured the economic status of the daughters by the median household income Y for the ZIP code they lived in [12]. A least squares regression used a variable D that equals 1 if the daughter was her mother’s first-born child and 0 otherwise:

The t values are in brackets. Is the estimated relationship between birth order and income

a. Statistically significant at the 5 percent level?

b. Substantial?

Transcribed Image Text:

Y38,976+1,513D [208.10] [6.85]