Consider the following Stata regression output (IDTQ1) Source S df MS Number of obs 526 F(3, 522) 76.87 Model 2194.1116 3 731.370532 Prob > F 0.0000 Residual 4966.30269 522 9.51398984 R-squared 0.3064 Adj R-squared 0.3024 Total 7160.41429 525 13.6388844 Root MSE 3.0845 wage Coef. Std. Err. t P>|t| [95% Conf. Interval] educ .5989651 .0512835 11.68 0.000 .4982176 .6997126 exper 0223395 .0120568 1.85 0.064 -.0013464 .0460254 tenure .1692687 .0216446 7.82 0.000 .1267474 .2117899 _cons -2.872735 .7289643 -3.94 0.000 -4.304799 -1.440671 II II II

MATLAB: An Introduction with Applications
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Consider the following Stata regression output (IDTQ1)
Source
S
df
MS
Number of obs
526
%3D
F(3, 522)
76.87
%3D
Model
2194.1116
3 731.370532
Prob > F
0.0000
Residual
4966.30269
522 9.51398984 R-squared
0.3064
%3D
Adj R-squared
0.3024
%3D
Total
7160.41429
525 13.6388844
Root MSE
3.0845
wage
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
educ
.5989651
.0512835
11.68
0.000
.4982176
.6997126
exper
.0223395
.0120568
1.85
0.064
-.0013464
.0460254
tenure
.1692687
.0216446
7.82
0.000
.1267474
.2117899
_cons
-2.872735
.7289643
-3.94
0.000
-4.304799
-1.440671
where wage is hourly wage in US$, exper is years of work experience, and tenure is years of tenure with the current employers.
Assume that the classical linear model assumptions hold.
Imagine you want to test whether the effect of experience is statistically significant. In contrast to what we typically do in the course, you want to conduct a one-sided
hypothesis test. The null hypothesis is that experience has no effect on wage. The alternative hypothesis is that the effect of experience on wage is positive.
For this one-sided hypothesis test, is the estimated effect of experience on wage statistically significant at the 5% level? How do you know?
Hint: start your answer with "Yes, because" or "No, because".
II
II
Transcribed Image Text:Consider the following Stata regression output (IDTQ1) Source S df MS Number of obs 526 %3D F(3, 522) 76.87 %3D Model 2194.1116 3 731.370532 Prob > F 0.0000 Residual 4966.30269 522 9.51398984 R-squared 0.3064 %3D Adj R-squared 0.3024 %3D Total 7160.41429 525 13.6388844 Root MSE 3.0845 wage Coef. Std. Err. t P>|t| [95% Conf. Interval] educ .5989651 .0512835 11.68 0.000 .4982176 .6997126 exper .0223395 .0120568 1.85 0.064 -.0013464 .0460254 tenure .1692687 .0216446 7.82 0.000 .1267474 .2117899 _cons -2.872735 .7289643 -3.94 0.000 -4.304799 -1.440671 where wage is hourly wage in US$, exper is years of work experience, and tenure is years of tenure with the current employers. Assume that the classical linear model assumptions hold. Imagine you want to test whether the effect of experience is statistically significant. In contrast to what we typically do in the course, you want to conduct a one-sided hypothesis test. The null hypothesis is that experience has no effect on wage. The alternative hypothesis is that the effect of experience on wage is positive. For this one-sided hypothesis test, is the estimated effect of experience on wage statistically significant at the 5% level? How do you know? Hint: start your answer with "Yes, because" or "No, because". II II
Consider the following Stata regression output (IDTQ1)
Source
S
df
MS
Number of obs
%3D
526
F(3, 522)
76.87
Model
2194.1116
3 731.370532
Prob > F
0.0000
Residual
4966.30269
522 9.51398984
R-squared
0.3064
Adj R-squared =
0.3024
Total
7160.41429
525 13.6388844
Root MSE
3.0845
wage
Coef.
Std. Err.
t
P>|t|
(95% Conf. Interval]
educ
.5989651
.0512835
11.68
0.000
.4982176
.6997126
еxper
.0223395
.0120568
1.85
0.064
-.0013464
.0460254
tenure
.1692687
.0216446
7.82
0.000
.1267474
.2117899
_cons
-2.872735
.7289643
-3.94
0.000
-4.304799
-1.440671
where wage is hourly wage in US$, exper is years of work experience, and tenure is years of tenure with the current employers.
Assume that the classical linear model assumptions hold.
Imagine you want to test whether the effect of experience is statistically significant. In contrast to what we typically do in the course, you want to conduct a one-sided
hypothesis test. The null hypothesis is that experience has no effect on wage. The alternative hypothesis is that the effect of experience on wage is positive.
For this one-sided hypothesis test, is the estimated effect of experience on wage statistically significant at the 5% level? How do you know?
Hint: start your answer with "Yes, because" or "No, because".
II
Transcribed Image Text:Consider the following Stata regression output (IDTQ1) Source S df MS Number of obs %3D 526 F(3, 522) 76.87 Model 2194.1116 3 731.370532 Prob > F 0.0000 Residual 4966.30269 522 9.51398984 R-squared 0.3064 Adj R-squared = 0.3024 Total 7160.41429 525 13.6388844 Root MSE 3.0845 wage Coef. Std. Err. t P>|t| (95% Conf. Interval] educ .5989651 .0512835 11.68 0.000 .4982176 .6997126 еxper .0223395 .0120568 1.85 0.064 -.0013464 .0460254 tenure .1692687 .0216446 7.82 0.000 .1267474 .2117899 _cons -2.872735 .7289643 -3.94 0.000 -4.304799 -1.440671 where wage is hourly wage in US$, exper is years of work experience, and tenure is years of tenure with the current employers. Assume that the classical linear model assumptions hold. Imagine you want to test whether the effect of experience is statistically significant. In contrast to what we typically do in the course, you want to conduct a one-sided hypothesis test. The null hypothesis is that experience has no effect on wage. The alternative hypothesis is that the effect of experience on wage is positive. For this one-sided hypothesis test, is the estimated effect of experience on wage statistically significant at the 5% level? How do you know? Hint: start your answer with "Yes, because" or "No, because". II
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