Enter the value of the test statistic in the box below

Question

Suppose that y_i is a binary variable. Consider the regression equation

y_i  = β₁ + β₂x_2i + β₃x_3i + e_i

Assume that over the range of the data the linear specification is sufficiently close to the true population regression function for misspecification not to be an important issue.

Data for the variables are in this file.

Estimate the linear probability model using an appropriate method and test the null hypothesis that ,β₂ = 0 and a two-sided alternative hypothesis.

(a) Enter the value of the test statistic in the box below (rounded to 2 decimal places). 0 using a t-test with a 5% significance level

(b) Enter the critical value in the box below (rounded to 3 decimal places)

(c) Do you reject the null hypothesis?