Given the following regression results: (A) Do a test of significance on the coefficient on OVER65. Show
Question:
Given the following regression results:
(A) Do a test of significance on the coefficient on OVER65. Show the five-step procedure.
(B) Would the results of your test turn out differently if the critical level of the test was 1% instead of 5%? Explain your response without resorting to a test of significance.
(C) Is the constant term significant at the 1% critical level? Explain your response without resorting to a test of significance.
(D) Form a 90% confidence interval around the coefficient on OVER65.
(E) Determine if r 2 = 0 for this regression. Show the five-step procedure.
(F) Would your results for E be different if the critical level of the test was 3%? Explain. (p-Value for this test is 0.01.)
(G) Do a test to determine if the coefficient on OVER65 equals zero or if it is greater than zero. Show the five-step procedure.
(H) Do a test to determine if the coefficient on OVER65 equals −1.00 or not. Show the five-step procedure.
Step by Step Answer:
Essential Econometric Techniques A Guide To Concepts And Applications
ISBN: 9781032101217,9781000538588
3rd Edition
Authors: Elia Kacapyr