Question
You have estimated the following regression to explain hourly wages, using a sample of 250 individuals: AHE_hat= -2.44 - 1.57 DFemme + 0.27 DMarried +
You have estimated the following regression to explain hourly wages, using a sample of 250 individuals:
AHE_hat= -2.44 - 1.57 DFemme+ 0.27 DMarried+ 0.59 Educ+ 0.04 Exper - 0.60 DNonwhite +
(1.29) (0.33)(0.36)(0.09)(0.01)(0.49)
+ 0.13 NCentral - 0.11 South
(0.59)(0.58)
R2= 0.36,SER= 2.74,n= 250
Test the null hypothesis that the coefficients onDMarried,DNonwhite, and the two regional variables,NCentralandSouthare zero. TheF-statistic for the null hypothesismarried=nonwhite=nonwhite=ncentral=south= 0 is 0.61. Do you reject the null hypothesis? Present ALL the steps and illustrate graphically your hypothesis test.
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