By comparing Tables Six and Nine, discuss the impacts on the estimation results ifheteroskedasticity is present. Table SixDependent Variable: LWAGEMethod: Least SquaresSample: 1 1260Included observations: 1260VariableCoefficientStd. Errort-StatisticProb.0.0814373.4075580.00070.00000.00000.277500EXPER0.0176700.0012530.00571414.10546EDUCUNION0.0791690.23859413.855860.0332227.1817750.0000 Table NineDependent Variable: LWAGEMethod: Least SquaresSample: 1 1260Included observations: 1260Huber-White-Hinkley (HC1) heteroskedasticity consistent standarderrors and covarianceVariableCoefficientStd. Errort-StatisticProb.0.2775000.0834713.3245040.0009EXPER0.0176700.00125114.126610.0000EDUC0.0791690.00587213.483300.0000UNION0.2385940.0307837.7507630.0000

Table 6: Model with no presence of heteroskedasticity. Decision Rule: If p-value ≤ α, then the…

Answered: By comparing Tables Six and Nine,…

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By comparing Tables Six and Nine, discuss the impacts on the estimation results if heteroskedasticity is p

A First Course in Probability (10th Edition)

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ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

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Question

By comparing Tables Six and Nine, discuss the impacts on the estimation results if
heteroskedasticity is present.

Table Six
Dependent Variable: LWAGE
Method: Least Squares
Sample: 1 1260
Included observations: 1260
Variable
Coefficient
Std. Error
t-Statistic
Prob.
0.081437
3.407558
0.0007
0.0000
0.0000
0.277500
EXPER
0.017670
0.001253
0.005714
14.10546
EDUC
UNION
0.079169
0.238594
13.85586
0.033222
7.181775
0.0000

Table Nine
Dependent Variable: LWAGE
Method: Least Squares
Sample: 1 1260
Included observations: 1260
Huber-White-Hinkley (HC1) heteroskedasticity consistent standard
errors and covariance
Variable
Coefficient
Std. Error
t-Statistic
Prob.
0.277500
0.083471
3.324504
0.0009
EXPER
0.017670
0.001251
14.12661
0.0000
EDUC
0.079169
0.005872
13.48330
0.0000
UNION
0.238594
0.030783
7.750763
0.0000

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