ECON 3304.001
Basic Techniques for Economic Research
Problem Set 5
Q1. Consider the following null hypothesis that the mean temperature in Dallas in April is 70?.
Interpret the following hypothesis testing results.
H0: μ = 70
HA: μ ≠ 70
(a) Interpret the null hypothesis using your t-statistic.
(b) Interpret the null hypothesis using p-value.
(c) Interpret your confidence interval and test the null hypothesis using confidence interval.
Q2. Answer the following questions according to the table: attratio is worker's attendance rate = actual days they show up at work days required for attendance.dis is a dummy variable indicating a worker is disabled or not: = {1 disabled 0 non - disabled age is worker's age.
(a) Is it simple regression model or multiple regression model?
(b) Write down the regression equation.
(c) Write down the null hypothesis and alternative hypothesis for regression coefficients.
Pr(T < t) = 0.2635 Pr(|T| > |t|) = 0.5271 Pr(T > t) = 0.7365
Ha: mean < 70 Ha: mean != 70 Ha: mean > 70
Ho: mean = 70 degrees of freedom = 29
mean = mean(temp) t = -0.6402
temp 30 66.1 6.091892 33.36667 53.64068 78.55932
Variable Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]
One-sample t test
_cons .9855363 .1229061 8.02 0.000 .7416018 1.229471
dis -.1662263 .0539149 -3.08 0.003 -.2732324 -.0592202
age -.0009336 .0028481 -0.33 0.744 -.0065862 .004719
attratio Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 4.79555681 99 .048439968 Root MSE = .21127
Adj R-squared = 0.0786
Residual 4.32959064 97 .044634955 R-squared = 0.0972
Model .465966173 2 .232983087 Prob > F = 0.0070
F( 2, 97) = 5.22
Source SS df MS Number of obs = 100
(d) Interpret hypothesis testing results for each coefficient respectively.
(e) Explain coefficient for age and dis.
(f) What does R_squared tell you?