Question
With the information below test the following hypothesis tests. Please write out the specific hypothesis test (null and alternative) and formula you use to produce
With the information below test the following hypothesis tests. Please write out the specific hypothesis test (null and alternative) and formula you use to produce the relevant test statistic and interpret the test result.
a. Test that all coefficients in the unrestricted model are equal to 0.
b. Test that height85 and heigth81 joinly have no effect on wage96.
c. Test that height85 and height81 have the same effect on wage96.
The unrestricted model is:
Wage96 = beta0 + beta1 height85 + beta2height81 + beta3athlets + beta4clubnum + e
reg wage96 height85 height81 athlets clubnum if wage96<120
Source |SSdfMSNumber of obs =1851
-------------+------------------------------F(4,1846) =29.91
Model |16394.012244098.50306Prob > F=0.0000
Residual |252987.1141846137.046107R-squared=0.0609
-------------+------------------------------Adj R-squared =0.0588
Total |269381.1261850145.611419Root MSE=11.707
wage96 |Coef.Std. Err.tP>|t|[95% Conf. Interval]
-------------+----------------------------------------------------------------
height85 |.0340185.19546770.170.862-.3493426.4173796
height81 |.3480922.19092971.820.068-.0263687.7225531
athlets |3.017681.56293425.360.0001.9136274.121736
clubnum |1.884238.28180786.690.0001.3315432.436934
_cons |-13.568287.053586-1.920.055-27.40213.2655622
test height85 = height81 = 0
( 1)height85 - height81 = 0
( 2)height85 = 0
F(2,1846) =7.77
Prob > F =0.0004
reg wage96 athlets clubnum ifwage96<120
Number of obs =1851
R-squared=0.0530
wage96 |Coef.Std. Err.tP>|t|[95% Conf. Interval]
-------------+----------------------------------------------------------------
athlets |3.282094.560955.850.0002.1819314.382256
clubnum |1.913579.28270176.770.0001.3591312.468027
_cons |13.16901.410124232.110.00012.3646513.97336
reg wage96 clubnum athlets Height81PlusHeight85 if wage96<120
Number of obs =1851
R-squared=0.0605
Wage96 Coef. Std. Err. t-value Pr>|t|
-------------+----------------------------------------------------------------
clubnum1.889380.281726.707 2.64e-11 ***
athlets3.033510.562585.392 7.86e-08 ***
Height81PlusHeight850.193030.050113.852 0.000121 ***
Constant-13.908137.04146-1.975 0.048397 *
---
Signif. codes:0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
Residual standard error: 11.71 on 1847 degrees of freedom
Multiple R-squared:0.0605, F-statistic: 39.64 on 3 and 1847 DF
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