hw4soln - PADP 8130 Fertig Spring 2012 UGA Homework 4...

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PADP 8130 Spring 2012 Fertig UGA Homework 4 Solutions 1. Write out the specific hypotheses in non-matrix form if H 0 : Rb=q where R = 1 0 0 0 1 1 0 0 0 , b = ! ! ! , and q= 0 0 0 . How many hypotheses are involved? Are the hypotheses all linear? What statistic would you use to test this? ! = 0 ! ! = 0 or ! = ! 2 linear hypotheses involving 3 coefficients. It is a joint test of 2 linear restrictions so the F-statistic is the appropriate statistic. 2. Using the PSID data file day2.dta that we created in class, run the following regression. = ࠵± + , where y is the natural log of family income, and X includes age of the head, 3 dummy variables representing educational attainment (high school graduate is the omitted category), 2 dummy variables representing race/ethnicity (omitted group is white), marital status, gender of the head, and a constant term. Test the hypothesis that the effect on your income of being married is the same size as the effect of a college education. Show the Stata output and then write your
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