Being an econometrician Suppose that a researcher wants to study whether eating

Question

Being an econometrician Suppose that a researcher wants to study whether eating more chocolate can improve your health. The researcher gathers data on characteristics of 1018 men and women aged 20 to 85 and runs the following regression: BMI,-0 + 1 Chocolate + 2 Female + 3 Age + 4 Activity + UI Where BMI is body mass index, Chocolate is the number of times a week that the person ate chocolate Female is a dummy for sex Age is age in years Activity is the number of times per week that the person engages in vigorous activity. The researcher estimated the coefficient on Chocolate to be-0.130 with a standard error of 0.053. The stated conclusion is that "chocolate consumption reduces you BMI." 1. Assess the analysis and the conclusion. 2. Suggest any improvements you can come up with

Explanation / Answer

lets calculate the t statistic for chocolate as

tstat = Coefficent/SE

= -0.130/0.053 = -2.452

now we know that the
df(Regression) = # of predictor variables

so we have 4 predictor variables so our df = 4

now we check the p value from the t table for df = 4 , alpha = 0.05 and t = -2.452

we see that the p value

The P-Value is .070294.

The result is not significant at p < .05.

so we conlude that the chocolate does not signfciantly effect BMI

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