Econometrics help We use Eviews in class Test the joint hypothesis at the 3.19%

Question

Econometrics help

We use Eviews in class

Test the joint hypothesis at the 3.19% level of significance that the effect of ability on education is twice the size of the effect of mother’s education and that the effect of an increase in the number of siblings by one is the opposite of the of another year of education for a mother. Assume homoscedasticity.

(a) How would I get the degrees of freedom numerator and denominator for the F-test?? Eviews command @qfdist(1-alpha,ndf,ddf)

There are 1230 observations

4 variables: edu, moms_edu, ability, sibs

regression equation: ls edu c moms_edu ability sibs

(b) What is the exact significance level for the test? Eviews command @qnorm(____)

Explanation / Answer

a) Given N = 1230, k = 4 variables

The degrees of freedom of Error or Residual is N-K = 1230-4 = 1226

The degrees of freedom of Regression is k-1 = 4-1 = 3

For F-test, df of Numerator = 3 and df of denominator = 1226

b)

The exact significance level for the test is p-value = 0.022944

In Excel,

=F.DIST.RT(3.19,3,1226)

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