Answer Happy

1. Consider below model that explains the number of book read in 2001. Independent variables are, Age: Measured in years, Income: Income of the family, measured in 1000TL, D3: Gender, 1 if Female, 04:1 if Parents has primary school degree (the highest education level of parents is selected), D5: 1 if parents has high school degree, D6: 1 if parents has undergrad degree, 07:1 if the person has primary school degree, D8: 1 if the person has high school degree, D9: 1 if the person has undergrad degree, D10: 1 if the person is living in urban, D11: D6xD9, D12: IncomexD9.

a. What is the expected change in number of books read if A in income = 5000TL?, Does it satisfy your expectation (3 points) b. Is the Age variable statistically significant? (5 Points) C. Calculate 90% Confidence interval Income. (5 Points) d. Find the coefficient of determination. (3 Points) e. Is the model statistically significant? (4 Points) f. What is the benchmark category of D11? (3 Points) g. Interpret D11 and Bız. (5 Points) h. A researcher proposes to exclude Income and parents' education (i.e. D4, D5, D6) from the model. An auxillary regression is estimated with SST=1908 and SSE=152. Should we drop these variables? (5 Points)