Interpret the null hypothesis using your


ECON 3304.001

Basic Techniques for Economic Research

Problem Set 5

Q1. Consider the following null hypothesis that the mean temperature in Dallas in April is 70?.

Interpret the following hypothesis testing results.

H0: μ = 70

HA: μ ≠ 70

(a) Interpret the null hypothesis using your t-statistic.

(b) Interpret the null hypothesis using p-value.

(c) Interpret your confidence interval and test the null hypothesis using confidence interval.

Q2. Answer the following questions according to the table: attratio is worker's attendance rate = actual days they show up at work days required for attendance.dis is a dummy variable indicating a worker is disabled or not: = {1 disabled 0 non - disabled age is worker's age.

(a) Is it simple regression model or multiple regression model?

(b) Write down the regression equation.

(c) Write down the null hypothesis and alternative hypothesis for regression coefficients.

Pr(T < t) = 0.2635 Pr(|T| > |t|) = 0.5271 Pr(T > t) = 0.7365

Ha: mean < 70 Ha: mean != 70 Ha: mean > 70

Ho: mean = 70 degrees of freedom = 29

mean = mean(temp) t = -0.6402

temp 30 66.1 6.091892 33.36667 53.64068 78.55932

Variable Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]

One-sample t test

_cons .9855363 .1229061 8.02 0.000 .7416018 1.229471

dis -.1662263 .0539149 -3.08 0.003 -.2732324 -.0592202

age -.0009336 .0028481 -0.33 0.744 -.0065862 .004719

attratio Coef. Std. Err. t P>|t| [95% Conf. Interval]

Total 4.79555681 99 .048439968 Root MSE = .21127

Adj R-squared = 0.0786

Residual 4.32959064 97 .044634955 R-squared = 0.0972

Model .465966173 2 .232983087 Prob > F = 0.0070

F( 2, 97) = 5.22

Source SS df MS Number of obs = 100

(d) Interpret hypothesis testing results for each coefficient respectively.

(e) Explain coefficient for age and dis.

(f) What does R_squared tell you?

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