Explain why the coefficient for "wagegov" changed (compared to the previous regression) when the two controls were added.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
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  1. Explain why the coefficient for "wagegov" changed (compared to the previous regression) when the two controls were added.  
Source |
SS
Model | 1110.57029
| 23.2045911
Total |
1133.77488
consump |
Coef.
profits
.5888685
wagepriv
.5219979
wagegovt
-.9060749
.7230873
year |
depression | .1799651
cons
29.49588
Residual
df
MS
5
222.114057
1.45028694
16
21 53.9892799
t
P>|t|
3.00 0.009
4.14 0.001
-1.28 0.219
2.61 0.019
0.09 0.930
5.31 0.000
Std. Err.
1965238
.125954
.7076281
.2766454
2.020838
5.556587
Number of obs
16)
F ( 5,
Prob > F
R-squared
Adj R-squared
Root MSE
22
153.15
0.0000
0.9795
0.9731
1.2043
[95% Conf. Interval]
.1722567
1.00548
.2549872
7890085
-2.40618
.5940298
.1366252
1.309549
-4.104019
4.46395
17.71644
41.27532
=
Transcribed Image Text:Source | SS Model | 1110.57029 | 23.2045911 Total | 1133.77488 consump | Coef. profits .5888685 wagepriv .5219979 wagegovt -.9060749 .7230873 year | depression | .1799651 cons 29.49588 Residual df MS 5 222.114057 1.45028694 16 21 53.9892799 t P>|t| 3.00 0.009 4.14 0.001 -1.28 0.219 2.61 0.019 0.09 0.930 5.31 0.000 Std. Err. 1965238 .125954 .7076281 .2766454 2.020838 5.556587 Number of obs 16) F ( 5, Prob > F R-squared Adj R-squared Root MSE 22 153.15 0.0000 0.9795 0.9731 1.2043 [95% Conf. Interval] .1722567 1.00548 .2549872 7890085 -2.40618 .5940298 .1366252 1.309549 -4.104019 4.46395 17.71644 41.27532 =
Source |
Model
Residual |
SS
1097.68809
36.0867872
Total | 1133.77488
Coef.
.3845354
.7192832
1.103315
_cons | 15.51946
consump
profits
wagepriv
wagegovt
df
3
18
21
Std. Err.
1513011
.1227598
2526076
1.870873
MS
365.89603
2.00482151
53.9892799
t
P>|t|
2.54 0.020
5.86 0.000
4.37 0.000
8.30 0.000
Number of obs =
22
F ( 3,
18)
=
182.51
Prob > F
=
0.0000
R-squared
=
0.9682
Adj R-squared
=
0.9629
Root MSE
=
1.4159
[95% Conf. Interval]
.0666636
7024071
.4613744
.9771921
.5726059
1.634024
11.5889
19.45001
Transcribed Image Text:Source | Model Residual | SS 1097.68809 36.0867872 Total | 1133.77488 Coef. .3845354 .7192832 1.103315 _cons | 15.51946 consump profits wagepriv wagegovt df 3 18 21 Std. Err. 1513011 .1227598 2526076 1.870873 MS 365.89603 2.00482151 53.9892799 t P>|t| 2.54 0.020 5.86 0.000 4.37 0.000 8.30 0.000 Number of obs = 22 F ( 3, 18) = 182.51 Prob > F = 0.0000 R-squared = 0.9682 Adj R-squared = 0.9629 Root MSE = 1.4159 [95% Conf. Interval] .0666636 7024071 .4613744 .9771921 .5726059 1.634024 11.5889 19.45001
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