QUESTION 1 You collect data on unemployment percentages and minimum wages for 500 random cities in the U.S. in 2015, and
Posted: Wed Mar 09, 2022 8:27 am
- Question 1 You Collect Data On Unemployment Percentages And Minimum Wages For 500 Random Cities In The U S In 2015 And 1 (270.88 KiB) Viewed 40 times
- Question 1 You Collect Data On Unemployment Percentages And Minimum Wages For 500 Random Cities In The U S In 2015 And 2 (265.08 KiB) Viewed 40 times
QUESTION 1 You collect data on unemployment percentages and minimum wages for 500 random cities in the U.S. in 2015, and then you estimate the following OLS regression: Unemployment_i=2.3+0.4Minimum Wage_i where unemployment percentages range from 4%-20% and minimum wages range from $0-$25 per hour across cities in your sample. Your estimation results show that SE(betaOhat)=0.9 and SE(beta1hat)=0.13. Consider the results from the sample regression function to answer the following question: As a city's minimum wage increases by $1 per hour, unemployment ... O Decreases by 2.7% O Increases by 1.9% Increases by 0.4% O Increases by 2.7% Doesn't change at all. O Decreases by 0.4% Not enough information is provided.
QUESTION 2 Consider the sample regression function from question 1. What is the unemployment percentage in a city where the minimum wage is $10? Enter a numeric answer without the % sign. QUESTION 3 Consider the sample regression function from question 1. The average minimum wage in the sample of cities is $6. What is the average unemployment percentage in the sample of cities? Enter a numeric answer without the % sign. QUESTION 4 Consider the sample regression function from question 1. You want to test whether beta1 is statistically significant when alpha=0.05. What is the value of the t-statistic for this test? Round your answer to two decimal places.