# Chapter 5 Answers - Chapter 5 Answers 1(a The 95 confidence interval for 1 β is 5 82 1 96 2 21 Î ª that is 1 10 152 1 4884 β Î¼(b)Calculate

This preview shows pages 1–3. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 5 Answers 1 (a) The 95% confidence interval for 1 β is { 5 82 1 96 2 21},- . Î . ª . that is 1 10 152 1 4884. β- . Î¼- . (b)Calculate the t-statistic: 1 1 5 82 2 6335 SE( ) 2 21 act t β β-- . = = = - . . . The p-value for the test 1 H β = vs. 1 1 H β ≠ is-value 2 ( | |) 2 ( 2 6335) 2 0 0042 0 0084 act p t = Φ - = Φ - . = . = . . 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 ( 5.6) 0 22 0.10 SE( ) 2 21 act t β β- - . = = = . The p-value for the test 1 : 5.6 H β = - vs. 1 1 : 5.6 H β ≠ - is-value 2 ( | |) 2 ( 0.10) 0.92 act p t = Φ - = Φ - = 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 β = - is not rejected at the 5% level, this value is contained in the 95% confidence interval. (d)The 99% confidence interval for β is {520.4 2.58 20.4}, that is, 467.7 573.0. β ≤ ≤ 2. (a) The estimated gender gap equals \$2.12/hour. (b)The hypothesis testing for the gender gap is 1 H β = vs. 1 1 0. H β ≠ With a t-statistic 1 1 2.12 5.89 ( ) 0 36 act t SE β β- = = = , . the p-value for the test is-value 2 ( | |) 2 ( 5.89) 2 0 0000 0 000 act p t = Φ - = Φ - = . = . (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 1% significance level. (c) The 95% confidence interval for the gender gap 1 β is {2 12 1 96 0 36}, . ) . ¼ ....
View Full Document

## This note was uploaded on 05/03/2010 for the course ECON 303 taught by Professor Grant during the Spring '10 term at Lewis and Clark Community College.

### Page1 / 5

Chapter 5 Answers - Chapter 5 Answers 1(a The 95 confidence interval for 1 β is 5 82 1 96 2 21 Î ª that is 1 10 152 1 4884 β Î¼(b)Calculate

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online