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See attached picture for question Given the following linear regression and info atinc42 = B1 + 82 * ecage26 + 3 * male1 + 84
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Given the following linear regression and info atinc42 = B1 + 82 * ecage26 + 3 * male1 + 84 * maleage regress atinc42 ecage26 malel maleage Source SS df MS Number of obs = 47705 F ( 3, 47701) = 907 . 38 Model 2. 3260e+12 3 7.7535e+11 Prob > F 0. 0000 Residual 4. 0760e+13 47701 854496599 R-squared = 0. 0540 Adj R-squared = 0. 0539 Total 4. 3086e+13 47704 903202919 Root MSE 29232 atinc42 Coef. Std. Err. t P>ItI [954 Conf. Interval] ecage26 72 . 6103 10.13666 7.16 0.000 52. 74231 92 . 47829 malel 2791 . 582 753. 175 3.71 0. 000 1315.348 4267 . 815 maleage 196. 8107 14. 64098 13.44 0. 000 168. 1141 225. 5072 cons 24841. 38 527. 7683 47. 07 0 . 000 23806. 95 25875 . 82 Consider the following hypothesis: the effect of age on after tax income is identical for males and females. Conduct a statistical test to verify if the data support that hypothesis. Use a level of significance of 5% and explain how you proceed. State at least one economic reason that could explain why this hypothesis is rejected. Please note that the variables: 1. Male1=1 for males, 0 for females 2. Maleage= (ecage26*male1); therefore, Maleage=0 for females 3. Atinc42 stands for after tax income in $ 4. Ecage26 = age of participantStep by Step Solution
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