Assume that we have regressed the log of household median income on the Gini coefficient and obtained the following result. Standard errors are listed in parenthesis.:
ln(median income)=11.26 - 1.43. Gini
(0.36) (0.80)
R2=0.061 no. obs.=51
F(1,49)=3.21 (p=0.079)
a. Interpret the regression coefficients.
b. Are the regression coefficients statistically significant from zero at the 10 percent significance level? Are they statistically significant from zero at the 5 percent significance level?
c. Given the values of R-squared and the F-statistic, how well do you think the model explains the variance in log of median income?