d. e. check if the adjusted R2 is close to 1. none of the above 11. You extract

Question

d. e. check if the adjusted R2 is close to 1. none of the above 11. You extract approximately 5,000 observations from the Current Population Survey (CPS) and estimate the following regression function: are: 3.32-0.45x Age, R2-0.02, SER = 8.66 (1.00) (0.04) ahe is average hourly earnings, and Age is the individual's age. The critical value for a 2-sided 5% hypothesis test is I-96. Given the specification, a 95% confidence interval for the effect of increasing age by 5 years is approximately a. 1-2.64,-1.86 b. 1-0.53,-0.37) c. 1-0.84,-0.06 d. I-1.36,5.28] e. cannot be determined given the information provided

Explanation / Answer

For Age, slope=-0.45 and standard error of slope is, SE=0.04.

We are also given, critical value of z is z*=1.96.

The 95% confidence interval for slope is:

Slope ± z* SE = -0.45 ± 1.96(0.04)

                      = -0.45 ± 0.08

                             or

                      (-0.53, -0.37)

Therefore, correct option is b.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.