Sample LBYEMET - Co, Mark Anthony F. 10935886 LBYEMET -...

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Co, Mark Anthony F. LBYEMET - Problem Set # 1 10935886 November 15, 2011 1.) Use the data in SLEEP75 from Biddle and Hamermesh (1990) to study whether there is a tradeoff between the time spent sleeping per week and the time spent in paid work. We could use either variable as the dependent variable. For concreteness, estimate the model: Where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked per during the week. (The table above is the picture image of the results got in Stata 11) (I) Estimate the model and interpret the estimated parameters. Based on the table, we could say that, . This means that if we don’t work during the week, we would be able to sleep for 3586.377 minutes at night per week. And for every minute of work that we do for the week, it would reduce minute of sleep per week by .1507458 minutes. (II) Interpret the coefficient of determination from the model. Does the model fit the data well? To be able to determine the fitness of the model we should look at the R-squared of the model which is .1033 or 10.33%. Based on our discussion for a model to be a good fit, the R- squared should be at least 50%. So if we compare our table: 10.33% < 50%, which makes our model not fit . (III) According to the t-tests, are the estimated parameters statistically significant? To answer this question about the parameters being significant, we should look at P>|t|, we would be able to based it if the value is less than 0.05 or 5%. A value lesser than 0.05 would mean that it is significant. Here we got a 0 in P>|t| in totwrk this means that this variable is significant in the model. This means that Total Work is significant in determining sleep.                                                                                                                                                                    _cons      3586.377   38.91243    92.17   0.000     3509.979    3662.775       totwrk     -.1507458   .0167403    -9.00   0.000    -.1836126    -.117879                                                                                                                                                                    sleep         Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]                                                                                                                                                                    Total      139239836   705  197503.313           Root MSE      =  421.14                                                                                    
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This note was uploaded on 11/21/2011 for the course ECON 109 taught by Professor Prof.lim during the Spring '11 term at De La Salle University.

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Sample LBYEMET - Co, Mark Anthony F. 10935886 LBYEMET -...

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