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The intercept coefficient means that children whose parents have average height zero would still have an expected height of 19 inches. Of course, this
The intercept coefficient means that children whose parents have average height zero would still have an expected height of 19 inches. Of course, this is not really meaning- ful. On the other hand, the slope coefficient of 0.7 implies that if parents are one inch taller (shorter) than average, we expect their children to be 0.7 inches taller (shorter) than average. This would imply that the intercept is zero, and the slope is 1. You can easily compute the relevant t-statistics as 19/7 and 3, and compare them to the cutoff values from the t-distribution. 19 +0.7 x 70.06 = 68.042 Impossible to compute with just the information given in the question. A good answer to this question will explain how you derive the relevant F-statistic: Run an unrestricted and a restricted regression (explain how you would run the re- stricted regression!), obtain the SSE for each, compute the F statistic using the formula from class, and compare it to the relevant cutoff value from the F distribu- tion.
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