The dataset used in this question contains data on 180 economics journals for the year 2000. The variable descriptions are as follows:
logoclc - log of the number of library subscription
loglibcit - log of the library subscription price per citation.
logage - log of the age of the journal in years (current year at the time of study-year in which journal was founded).
logchars - log of the total number of characters.
Answer the following questions based on this dataset:
A. (10 points) A researcher believes that effect of a one percent increase in journal age on the dependant variable is twice the effect of a one percent increase in the total number of characters. If the value of loglibcit = 2, do you agree with him? (Hint: Use the following regression and the following covariance matrix to answer the question and α = 0.05). Make sure to state clearly the null and alternative hypothesis being tested and what do you conclude from the test (not only if you reject or fail to reject the null but also a one line summary of the result obtained from the test).
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Dependent Variable: LOGOCLC
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Method: Least Squares
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Included observations: 180
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White Heteroskedasticity-Consistent Standard Errors & Covariance
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Variable
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Coefficient
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Std. Error
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t-Statistic
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Prob.
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LOGLIBCIT
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-0.940186
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0.162515
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-5.785237
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0.0000
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LOGLIBCIT^2
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0.009160
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0.019204
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0.476996
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0.6340
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LOGAGE
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0.373395
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0.117644
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3.173945
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0.0018
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LOGAGE*LOGLIBCIT
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0.155586
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0.051957
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2.994545
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0.0031
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LOGCHARS
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0.228874
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0.096737
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2.365954
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0.0191
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C
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3.420021
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0.373764
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9.150211
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0.0000
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R-squared
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0.634339
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Mean dependent var
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4.740388
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Adjusted R-squared
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0.623831
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S.D. dependent var
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1.123617
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0
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