ECON 3304.001 Basic Techniques for Economic Research Shidi Wang University of Texas at Dallas, Spring 2015 Problem Set 5 --- Due on Wed, Apr. 29th Q1. Consider the following null hypothesis that the mean temperature in Dallas in April is 70. Interpret the following hypothesis testing results. (30 Points) H0 : = 70 HA : 70 One-sample t test Variable Obs Mean Std. temp 30 66.1 6.091892 Ho: mean mean Ha: Pr(T < = = Err. Std. [95% 33.36667 mean(temp) 70 mean t) = Dev. Ha: mean != Pr(|T| > |t|) = Interval] 53.64068 degrees < 70 0.2635 Conf. of 70 0.5271 78.55932 t freedom Ha: Pr(T > = = -0.6402 29 mean t) = > 70 0.7365 (a) Interpret the null hypothesis using your t-statistic. (10 Points) (b) Interpret the null hypothesis using p-value. (10 Points) (c) Interpret your confidence interval and test the null hypothesis using confidence interval. (10 Points) Q4. Answer the following questions according to the table: (70 Points) attratio is worker's attendance rate = actual days they show up at work days required for attendance . 1 disabled dis is a dummy variable indicating a worker is disabled or not: = { 0 non disabled age is worker's age. Source SS df MS Model Residual .465966173 4.32959064 2 97 .232983087 .044634955 Total 4.79555681 99 Number of obs F( 2, 97) Prob > F R-squared Adj R-squared Root MSE .048439968 attratio Coef. age dis _cons -.0009336 -.1662263 .9855363 Std. Err. .0028481 .0539149 .1229061 t -0.33 -3.08 8.02 P>|t| 0.744 0.003 0.000 [95% Conf. -.0065862 -.2732324 .7416018 = = = = = = 100 5.22 0.0070 0.0972 0.0786 .21127 Interval] .004719 -.0592202 1.229471 (a) Is it simple regression model or multiple regression model? (5 Points) (b) Write down the regression equation. (12 Points) (c) Write down the null hypothesis and alternative hypothesis for regression coefficients. (18 Points) (d) Interpret hypothesis testing results for each coefficient respectively. (15 Points) (e) Explain coefficient for age and dis. (15 Points) (f) What does R_squared tell you? (5 Points)