PADP 8130 Spring 2012 Fertig UGA Homework 4 Solutions 1. Write out the specific hypotheses in non-matrix form if H0 : Rb=q where R = 1000 1 − 1000 , b = ࠵ ! ࠵ ! ࠵ ! , and q=000 . 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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