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PADP 8130
Spring 2012
Fertig
UGA
Homework 4 Solutions
1.
Write out the specific hypotheses in nonmatrix 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 Fstatistic 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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 Spring '12
 Fertig

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