Econ120BCh5

# Econ120BCh5 - Chapter 5 Answers 5.1 5.2 5.3 5.5 5.6 5.9...

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Chapter 5 Answers 5.1, 5.2, 5.3, 5.5, 5.6, 5.9, 5.13, 5.14 1. (a) The 95% confidence interval for 1 is { 5 82 1 96 2 21},   that is 1 10 152 1 4884.    (b) Calculate the t -statistic: 1 1 ˆ 0 582 2 6335 ˆ SE( ) 2 21 act t   The p -value for the test 01 0 H  vs. 11 0 H  is -value 2 ( | |) 2 ( 2 6335) 2 0 0042 0 0084 act pt     The p -value is less than 0.01, so we can reject the null hypothesis at the 5% significance level, and also at the 1% significance level. (c) The t -statistic is 1 1 ˆ (5 . 6 ) 022 0.10 ˆ SE( ) 2 21 act t  The p -value for the test :5 H . 6   vs. H . 6   is -value 2 ( | |) 2 ( 0.10) 0.92 act The p -value is larger than 0.10, so we cannot reject the null hypothesis at the 10%, 5% or 1% significance level. Because 1 5.6   is not rejected at the 5% level, this value is contained in the 95% confidence interval. (d) The 99% confidence interval for 0 is {520.4 2.58 20.4}, that is, 0 467.7 573.0.  2. (a) The estimated gender gap equals \$2.12/hour. (b) The hypothesis testing for the gender gap is 0 H vs. 0. H With a t -statistic 1 1 ˆ 0 2.12 5.89 ˆ ()0 3 6 act t SE the p -value for the test is -value 2 ( | |) 2 ( 5.89) 2 0 0000 0 000 act (to four decimal places) The p -value is less than 0.01, so we can reject the null hypothesis that there is no gender gap at a

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Econ120BCh5 - Chapter 5 Answers 5.1 5.2 5.3 5.5 5.6 5.9...

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