Suppose we are interested to test whether white households are exposed to less air pollution than...

 

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Suppose we are interested to test whether white households are exposed to less air pollution than non-white households and run the model AQI; = Bo+ B₁White; +ui. Where AQI, is a measure of the average air quality index where individual i lives and White; is a binary variable equal to 1 if individual i is white. Dependent Variable: Variables White; (Intercept) Fit statistics Observations R² AQIi -3.31 (1.84) 20.12 (2.36) 10,591 0.011 Standard errors are reported in parenthesis. (a) (2 points) Interpret Bo. (b) (2 points) Interpret 3₁. (c) (2 points) What is average AQI for white individuals? (d) (4 points) Is there evidence of a different air quality levels for white vs non-white individ- uals? Specify the test you are going to run, the null and alternative hypotheses, and the conclusion for your test. Suppose we are interested to test whether white households are exposed to less air pollution than non-white households and run the model AQI; = Bo+ B₁White; +ui. Where AQI, is a measure of the average air quality index where individual i lives and White; is a binary variable equal to 1 if individual i is white. Dependent Variable: Variables White; (Intercept) Fit statistics Observations R² AQIi -3.31 (1.84) 20.12 (2.36) 10,591 0.011 Standard errors are reported in parenthesis. (a) (2 points) Interpret Bo. (b) (2 points) Interpret 3₁. (c) (2 points) What is average AQI for white individuals? (d) (4 points) Is there evidence of a different air quality levels for white vs non-white individ- uals? Specify the test you are going to run, the null and alternative hypotheses, and the conclusion for your test.

Answer rating: 100% (QA)

a Bo or the coefficient for the intercept represents the average AQI for nonwhite individuals when White 0 In this case the estimated value for Bo is ... View the full answer