Panel 9.1 shows the OLS regression results obtained in a study of test scores of 609...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Panel 9.1 shows the OLS regression results obtained in a study of test scores of 609 students in the US. The dependent variable, FGPA, is the grade point average at the end of the freshman year. The explanatory variables are: SATM (SAT mathematics test score), SATV (SAT verbal test score), and FEM (a dummy variable that takes the value of 1 for females and 0 for males). Panel 9.1. Dependent variable: FGPA Model: FGPA = ₁ +8₂ SATM + 3, SATV +8₁ FEM + € Method: Ordinary Least Squares; Variable Estimated coefficient Standard error t-statistic C 7.2054 SATM 5.4104 1.5570 0.1717 SATV FEM R-squared: 0.0830 Log likelihood: -364.6690 0.0142 0.2003 Included observations: 609 0.2161 0.0319 0.0279 0.0374 0.5071 5.3576 Sum of squared residuals: 118.1010 Probability 0.0000 0.0000 0.6123 0.0000 (a) Conduct an overall significance test of the model, FGPA = 3 + ₂SATM + 3,SATV + 3,FEM +, shown in Panel 9.1. (4 marks) (3 marks) (b) Compute a 95% confidence interval for 3₁. (c) Consider testing the hypothesis Ho: 3₁. Describe how you may carry out an LM test of this hypothesis using the nR form. Your answer should clearly describe the test procedure (including the regressions you need to carry out for this specific problem), the test statistic its reference distribution, as well as the decision rule. (Word limit: 150 words) (6 marks) (d) Panel 9.2 shows the results of an auxiliary regression for a diagnostic test of the model in Panel 9.1. Explain what feature of the data this auxiliary regression is used to test for and comment on the result of the test. Your answer should clearly state the specific null and alternative hypotheses being tested and explain your conclusion of the test. (7 marks) Panel 9.2. Dependent variable: RESID Model: RESID=1+2 FEM + u Method: Ordinary Least Squares; Included observations: 609 Variable Estimated coefficient Standard error t-statistic C 14.4271 FEM 1.4483 R-squared: 0.0034 Sum of squared residuals: 36.2375 Log likelihood: -4.9187 0.1825 0.0294 (RESID is the residual from regression in Panel 9.1) 0.0127 0.0203 Probability 0.0000 0.1480 Panel 9.1 shows the OLS regression results obtained in a study of test scores of 609 students in the US. The dependent variable, FGPA, is the grade point average at the end of the freshman year. The explanatory variables are: SATM (SAT mathematics test score), SATV (SAT verbal test score), and FEM (a dummy variable that takes the value of 1 for females and 0 for males). Panel 9.1. Dependent variable: FGPA Model: FGPA = ₁ +8₂ SATM + 3, SATV +8₁ FEM + € Method: Ordinary Least Squares; Variable Estimated coefficient Standard error t-statistic C 7.2054 SATM 5.4104 1.5570 0.1717 SATV FEM R-squared: 0.0830 Log likelihood: -364.6690 0.0142 0.2003 Included observations: 609 0.2161 0.0319 0.0279 0.0374 0.5071 5.3576 Sum of squared residuals: 118.1010 Probability 0.0000 0.0000 0.6123 0.0000 (a) Conduct an overall significance test of the model, FGPA = 3 + ₂SATM + 3,SATV + 3,FEM +, shown in Panel 9.1. (4 marks) (3 marks) (b) Compute a 95% confidence interval for 3₁. (c) Consider testing the hypothesis Ho: 3₁. Describe how you may carry out an LM test of this hypothesis using the nR form. Your answer should clearly describe the test procedure (including the regressions you need to carry out for this specific problem), the test statistic its reference distribution, as well as the decision rule. (Word limit: 150 words) (6 marks) (d) Panel 9.2 shows the results of an auxiliary regression for a diagnostic test of the model in Panel 9.1. Explain what feature of the data this auxiliary regression is used to test for and comment on the result of the test. Your answer should clearly state the specific null and alternative hypotheses being tested and explain your conclusion of the test. (7 marks) Panel 9.2. Dependent variable: RESID Model: RESID=1+2 FEM + u Method: Ordinary Least Squares; Included observations: 609 Variable Estimated coefficient Standard error t-statistic C 14.4271 FEM 1.4483 R-squared: 0.0034 Sum of squared residuals: 36.2375 Log likelihood: -4.9187 0.1825 0.0294 (RESID is the residual from regression in Panel 9.1) 0.0127 0.0203 Probability 0.0000 0.1480
Expert Answer:
Answer rating: 100% (QA)
1 Overall significance of model Ho B Bp0 H B 0 foratleastonej j 12p rejection of null hypot... View the full answer
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
Students also viewed these accounting questions
-
In a study of the determinants of direct airfares to Cleveland, Paul W. Bauer and Thomas J. Zlatoper obtained the following regression results (in tabular form) to explain one-way airfare for first...
-
In a study of the psychosocial changes in individuals who participated in a community-based intervention program, individuals who were clinically identified as hypertensives were randomly assigned to...
-
In a study of the production function of the United Kingdom bricks, pottery, glass, and cement industry for the period 1961 to 1981, R. Leighton Thomas obtained the following results: 1. log Q = -...
-
Zanny Mouldings has the following estimated costs for the year ahead: Directly used materials $25,100 Direct labor costs $62,300 factory chief salary $37,800 Ad spend 34.000 $ Heating and lighting...
-
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2011: Required: Prepare a pension spreadsheet that shows the relationships among the...
-
What is the tax base for the Social Security and Medicare taxes for an employee or employer? What is the tax base for Social Security and Medicare taxes for a self-employed individual? Is the...
-
Darice Goodrich receives cash from customers as part of her job duties. Her other duty is to post the receipts to customer accounts receivable. Based on these duties, her company has weak a. ethics....
-
Listed below are five procedures followed by The Beat Company.1. Several individuals operate the cash register using the same register drawer.2. A monthly bank reconciliation is prepared by someone...
-
Tater and Pepper Corporation reported sales of $ 4 3 million. Tater and Pepper listed $ 7 . 6 million of inventory on its balance sheet. Using a 3 6 5 - day year, how many days did ater and Pepper s...
-
A circle, C, has equation x 2 + y 2 16x 36 = 0. a. Find the coordinates of the centre of the circle. b. Find the radius of the circle. c. Find the coordinates of the points where the circle meets...
-
4. Draw a control flow graph (CFG) for the program specified using pseudocode in Figure 1 and calculate the total number of paths in the CFG. begin end read(i); j = 0; if (i > 500) j = 400; endif; if...
-
The powerful Ted Talk that you watched this week, 3 Bones of Networking for Student Success, will be the focus of this exciting assignment. As a college student and professional, it is important to...
-
As mentioned, from a business perspective, staying on top of the current events of the world is imperative to be a successful business person, regardless if it's happening in our own "backyard" or...
-
Complete Questions correctly show the calculation for correct answers 1 POPLAR LTD. A 2 Start-up Balance Sheets 3 4 5 Assets 6 Current assets. 7 Cash 8 Accounts receivable 9 Inventory 10 Prepaid...
-
Label axes and curves Suppose a monopoly union raises wages in this sector by $3 - Identify the new contract - Label Wo and W - Identify key measurements What would change if some workers wait in...
-
What are Goodwill s competitive advantages having diversity in it's workforce?
-
What are some key functions of a Project Management Office ( PMO ) ? Implementing project management best practices Managing the organization s income and expenses Creating project documentation,...
-
A police officer pulls you over and asks to search your vehicle because he suspects you have illegal drugs inside your car. Since he doesn't have reasonable suspicion to search your car, legally he...
-
With the addition of five pairs of observations(18,000, 39.2), (22,400, 27.9), (24,210, 22.3), (5,400, 11.7), and (9,340, 32.5)to the data in Problem 3 in Chapter 5, the accompanying computer output...
-
The following questions concern Poisson regression models fit to fictitious follow-up study data in which rates of disease are modeled as a function of age and smoking status. The SAS program codes...
-
For the scenario in Problem 1(b), a. Determine the required sample size for power levels ranging from 0.6 to 0.9, in increments of 0.10. Plot the sample size versus power. Comment on the observed...
-
If share rights are recognized on issuance, what happens to the share rights account if the share rights are exercised? Allowed to lapse? Compare this to the treatment of the common share conversion...
-
When would a share-based compensation contract, payable after three years, result in an equity account being recognized in the first year? A liability? Both equity and a liability?
-
Assume that a cash-settled share-based payment scheme is established for an employee group. It will vest over five years, and be paid at the end of the fifth year. The total fair value of the plan is...
Study smarter with the SolutionInn App