Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

no need for final answer, describe the process please. (a) Assume both the wage distribution of people with a bachelor degree and the wage distribution

no need for final answer, describe the process please.

(a) Assume both the wage distribution of people with a bachelor degree and the wage distribution of people without a bachelor degree follow normal distribution and having mean u1 and u0 respectively. Write down the estimators for u1 and u0 respectively.

(b) Write down the (null and alternative) hypotheses that difference between the average wages of people with a bachelor degree and people without a bachelor degree is zero. Then write down test statistic for the hypothesis test(Assume the variances of the two groups are not equal) and the p-value for the test.

(c) Construct a 1 ? ? confidence interval for u1 ? u0.

image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

How is a standardized residual different from a residual?

Answered: 1 week ago

Question

1. Build trust and share information with others.

Answered: 1 week ago