Question

An indeppndent researcher is interested in studying the factors that affects the educational attainment of an individual (Y). For her study she chooses educational attainment of the individual's mother (X,) and the annual income of the individual's family (X) as regressors. The researcher randomly selects a sample of 280 individuals and estimates the following regression function: ŷ = 8.00 + 1.74X, + 1.12X2. (0.76) (1.54) She wants to test whether or not a change in (X,) significantly affects (Y) keeping the annual income of the individual's family constant. The l-statistic for testing the hypothesis Ho: B, =0 vs. H: B, *0 will be (Round your answer to two decimal places.) the researcher uses a 5% significance level, we v the null hypothesis. She now includes the educational attainment of the individual's father (X) as the third regressor in the regression equation. The newly estimated regression equation is: Ý-8.51 + 1.91X, +2.01X2 +0.98X3- (2.20) (2.14) (1.07) With the revised estimates she again tests the hypothesis Ho: , -0 vs. H: B, #0 keeping the annual income of the individual's family and the educational attainment of the individual's father constant. The t-statistic for the test the researcher wants to conduct will be (Round your answer to two decimal places.) Enter your answer in each of the answer boxes.

Answer 1

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