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Unformatted text preview: e t-statistic is: The critical value for a two tailed test at the 1 percent level with 87,334-8 degrees of freedom is
so fail to reject the null hypothesis. page 2
(b) For this question, we can use a two-sided t-test. Because there is no differential effect of
education by race in this model (no coefficient for BLACK*ED or ASIAN*ED), the hypothesis test
is: The t-statistic is:
( ) √
so reject the null hypothesis. (You could also set up
case the t-statistic would be positive and you would still reject the null.) , in...
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