Sketched out answers Final Econ140A 2013Fall

009965ed 01 on average white unmarried men with 133

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Unformatted text preview: 0.1 On average, white unmarried men with 13.3 years of education make 10 percent more than white unmarried women with 13.3 years of education. 4. a. b. c. ( estimate. d. e. )–( ), the difference-in-differences . This difference doesn’t take into account that there might have been other factors changing (besides the policy) that affected students’ SAT scores. For example, test scores could have increased for all students in the area regardless of whether they were exposed to the SAT course. That’s why Ventura County is used to simulate what would have happened in Santa Barbara in the absence of the policy change. 5. a. We want to test the null hypothesis t-statistic is ̂ against the alternative ̂ . The This hypothesis calls for a one-tailed test at the 5 percent level. The appropriate critical value is 1.645 so you reject the null hypothesis. b. A 99 percent confidence interval uses the 0,01 critical value, which equals 2.576 in this case. So the 99 percent confidence interval is ( ) c. The...
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