TRUE OR FALSE

1.The p-values that are automatically output when one runs:regress y x1 x2 in Stata, are suitable to use when concluding using the p-value rejection rule, for the following hypotheses: H0 :1= 0 against a left-tailed alternative H1:1<0.

2.Suppose we have the following population model y =0+1 x1+2 x2+u and are testing the following hypothesis H0:2= 0 against the two sided alternative H1:26=0. In this case (when q= 1), if one runs:regress y x1 x2 in Stata, the t-stat which is automatically output by Stata is related to the F-stat in the following way:t=F

3.

In the following multiple linear regression model y=0+1 female+2 educ+3(femaleeduc) +u, we have that female= 1 if the individual is female and 0 otherwise and (femaleeduc) is an interaction term between female and educ. In this model, if we have statistically concluded1>0 &3>0, then we know that holding educ fixed, males make more on average than females and that males have a higher return to education than females(hint: it will be helpful to graph this to see for yourself )