week4ans

# week4ans - Week 4 Answers 1 Run a regression of ahe on...

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Unformatted text preview: Week 4 Answers 1. Run a regression of ahe on female. reg ahe female Source | SS df MS Number of obs = 5911-------------+------------------------------ F( 1, 5909) = 128.47 Model | 5995.00582 1 5995.00582 Prob > F = 0.0000 Residual | 275747.817 5909 46.6657331 R-squared = 0.0213-------------+------------------------------ Adj R-squared = 0.0211 Total | 281742.822 5910 47.6722204 Root MSE = 6.8312------------------------------------------------------------------------------ ahe | Coef. Std. Err. t P>|t| [95% Conf. Interval]-------------+---------------------------------------------------------------- female |-2.044285 .1803623-11.33 0.000-2.397861-1.690709 _cons | 14.80547 .1161177 127.50 0.000 14.57783 15.0331------------------------------------------------------------------------------ 2. Test the claim that males and females have the same hourly earnings. β 1 here measures the difference in the hourly earning for males and females. H : β 1 = 0 H A : β 1 6 = 0 Using the Stata table, t stat is 11.33 or p - value is 0.000 which means the null can be rejected. Thus, the hourly earnings are different for males and females. 3. Generate a variable male = 1 - female. Without using Stata, write down the estimates you will obtain for ˆ β and ˆ β 1 in a regression of ahe on male. Now check your answers using Stata.in a regression of ahe on male....
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week4ans - Week 4 Answers 1 Run a regression of ahe on...

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