Question:

1. Estimate astandardized regression modelwithypcgras the dependent variable and explanatory variablesedavg,testavg, andypc60. Don't forget to suppress the intercept (constant) in your regression. Report your regression here. Interpret the coefficients of your regression model. Which has a greater effect on growth? Years in School or Test Scores?
2. Use the"test"statement in STATA to determine if the effect of Years in School is equal to the effect of Test Scores on growth. Report your results here. State your null and alternative hypotheses of this test and your conclusion.
3. Here we are going to replicate the results of part b) by using the restricted regression and unrestricted regression F-statistic based on R-square measures. First,report the restricted regressionthat is implied by the null hypothesis of part b). (Remember you need to suppress the constant term in your restricted regression.) You have already run the unrestricted regression in part a).Explicitlyshow me how you would calculate the F-statistic reported in part b).
4. Now add the standardized versions of the variablesproprtsandopento your regression of part a) and run it being sure to suppress the intercept.Report your regression equation here. Which is more important, property rights or the openness of the economy in promoting growth? Explain your answer.
5. Is the adjusted R-square of the model in part d) greater or less than the adjusted R-square of the model of part a)? Which model do you prefer between the model of part a) or the model of part d)? Explain your answer.
6. Report the STATA code you used for this problem.

DATA:

codenameopened60ypc60ypcgrtestavgproprtsedavgregion

ARGArgentina06.1317.395.9963.926.57.215LATAM

AUSAustralia.879.81510.6182.2185.0936589.3211.4515COMM

AUTAustria18.2767.3652.9635.0892249.749.852C-EUR

BELBelgium17.3897.7592.845.0410779.699.114C-EUR

BRABrazil.213.0722.3952.7853.63757.95.2845LATAM

CANCanada19.11410.4192.4025.0378349.7411.091COMM

CHESwitzerland110.96314.8771.4465.1415251011.845C-EUR

CHLChile.596.1883.8182.4164.0493057.828.066LATAM

CHNChina02.26.6854.3414.9394487.794.109ASIA

COLColombia.333.7012.5251.9094.1521237.395.414LATAM

CYPCyprus15.5293.0654.6634.542127.2MENA

DNKDenmark19.0810.9172.2544.9621839.7410.6395N-EUR

EGYEgypt.211.0051.4762.6394.0299466.773.8815MENA

ESPSpain15.7944.6933.4264.8290869.627.6495S-EUR

FINFinland16.8517.4382.955.1263019.749.266N-EUR

FRAFrance16.7297.862.6495.0400489.748.729C-EUR

GBRUnited Kingdom19.1139.6822.0954.9499989.7911.119C-EUR

GHAGhana.331.892.8321.2173.6028216.323.5755SSAFR

GRCGreece15.944.1593.1944.60777.787.9205S-EUR

HKGHong Kong15.8153.0475.5775.194928.138.4085ASIA

IDNIndonesia.721.6.963.3853.8798737.534.425ASIA

INDIndia01.169.8382.7514.2814258.282.754ASIA

IRLIreland.857.2455.2084.1394.994579.748.708C-EUR

IRNIran0.7122.6352.0754.2185883.028MENA

ISLIceland6.5078.1062.8354.9355668.4305N-EUR

ISRIsrael.338.1365.3612.9184.6862978.599.674999MENA

ITAItaly15.8186.8172.9484.7576089.468.073S-EUR

JORJordan12.5752.3051.3184.2637096.766.428MENA

JPNJapan.959.4794.6574.2565.3104339.7411.0445ASIA

KORKorea, Republic of.774.981.5715.9545.3375768.718.6605ASIA

MARMorocco.49.6111.3222.623.3271987.092.0975MENA

MEXMexico.313.983.9723.99757.515.9665LATAM

MYSMalaysia13.2172.1473.9054.8384397.986.262ASIA

NLDNetherlands18.3389.2632.4425.114952109.8385C-EUR

NORNorway19.0518.2393.0164.8302029.910.768N-EUR

NZLNew Zealand.318.9811.5551.2284.9784939.7410.536COMM

PERPeru.384.2673.118.9673.1255.946.293LATAM

PHLPhilippines.264.4482.0221.3253.6470045.466.1945ASIA

PRTPortugal13.1553.4343.9154.5637299.145.216S-EUR

ROMRomania.187.2251.0473.5874.5622327.288.6135S-EUR

SGPSingapore14.1952.286.8715.3304319.327.005ASIA

SWESweden18.68510.1122.1485.0130049.5210.2005N-EUR

THAThailand12.6011.1214.6314.5647097.615.0565ASIA

TUNTunisia.26.8281.9291083.1913.7950326.452.634MENA

TURTurkey.232.1372.72.3514.1279647.464.1955MENA

TWNTaiwan.94.3641.4686.6675.4516729.237.32ASIA

URYUruguay.135.3165.841.2544.37.076.8365LATAM

USAUSA110.17912.4142.4984.9026361011.404COMM

ZAFSouth Africa.164.3214.9171.0753.0893626.965.8345SSAFR

ZWEZimbabwe03.5591.1621.9194.1070626.185.9265SSAFR