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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.
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
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