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Source 55 df M5 Number of obs = 526 F(3, 522) = 16.01 Model 2194.1116 3 131.310532 Prob > F = 0.0000 Residual 4066.30260 522
Source 55 df M5 Number of obs = 526 F(3, 522) = 16.01 Model 2194.1116 3 131.310532 Prob > F = 0.0000 Residual 4066.30260 522 0.513%!\" R-squared = 0.3064 Adj Rsquared = 0.3024 Total 1160.41429 525 13.6300044 Root HSE = 3.0045 wage Eoef. Std. Err. t P>|t| [959a Conf. Interval] educ .5900651 .0512035 11.66 0.000 .4002116 .6001126 exper .0223355 .0120560 1.05 0.064 -.0013464 .0460254 tenu re .1602607 . 0216446 1.02 0 . 000 . 1261414 . 2111000 _cons -2.612135 .1209643 -3.94 0.000 4.304199 4.440611 where wage is houriywage in US$, exper is yea rs of work experience, and tenure is years of tenure with the current employers. Assume that the classical linear model assumptions hold. Imagine you want to test whether the effect of experience is statistically signicant. in contrast to what we typically do in the course, you want to conduct a onesided hypothesis test. The null hypothesis is that experience has no effect on wage. The alternative hypothesis is that the effect of experience on wage is positive. For this oneisided hypothesis test is the estimated effect of experience on wage statistically significant at the 5% level? How do you know? Hint: start your answer with "Yes, because\" or \"No, because"
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