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You are analyzing the determinants of medical spending. Below are descriptive statistics and the results of a regression of spending on a measure of self-rated
You are analyzing the determinants of medical spending. Below are descriptive statistics and the results of a regression of spending on a measure of self-rated health, age, gender (male), age interacted with gender (ageXmale) and race / ethnicity (white, black or Hispanic). A higher value of self-reported health indicates better health. DESCRIPTIVE STATISTICS Mean Standard deviation Medical spending ($) 155.5 436.9 Self-rated health (0-100) 75.6 13.8 Age (years) 28.0 16.7 Male 0.455 0.498 Black 0.029 0.168 Hispanic 0.145 0.352 SUMMARY OUTPUT Regression Statistics Multiple R 0.211543 R Square 0.04475 Adjusted R Square 0.039962 Standard Error 428.0329 Observations 1204 ANOVA df SS MS F Significance F Regression 6 10273697.46 1712283 9.345903 4.8725E-10 Residual 1197 219304927.5 183212.1 Total 1203 229578624.9 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercep 358.0756 79.66724087 4.49464 7.64E-06 201.7726007 514.378537 self_rated_health 4.424453 0.908258691 -3.660249 0.000263 age 4.572104 3.572227 0.000368 1.610223649 5.53398347 male -77.12484 48.78336287 -1.720966 -172.8352551 18.5855681 ageXmale 0.930395 1.489865015 -0.624482 0.53243 -3.853431967 1.99264282 black -69.04421 73.8787609 -0.934561 0.350203 -213.9904781 75.9020672 hispanic -33.74977 35.24325591 -0.390139 0.696503 -82.89519607 55.395661Question 1 {6 points} CALCULATE the values of the blank YELLOW cells above. You can usethe results in the yellow cell just below, or in the yellow cells above. Question 2 {3 points} IDENTIFY any variables that are statistically significant. Question 3 [4 points} INTERPREI' the coefficient on SELFRATED HEALTH. Question 4 [3 points} CALCULATE the average difference in spending between blacks and Hispanics, holding all else equal. Question 5 [4 points} EXPLAIN BOTH WHETHER and WHY there is good evidence that the relationship between age and spending differs by gender
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