Answer Happy

AHE = beta0 + beta1 * AGE + error where AHE and AGE refer to the (average hourly) earnings and age of an individual (and there are 500 individuals in your sample). The unit of AHE is dollars per hour and the unit of AGE is years. Answer the following questions: Calculate the test statistic for the null hypothesis H0: beta1 = 0 against the alternative H1: beta1 not= 0: t = Is AGE statistically significant at 10%? (type YES or NO) at 5%? and 1%? What is the p-value associated with the coefficient's t-statistic? (if the pvalue is smaller than 0.01 type 0.00) Construct a 90% confidence interval for the slope coefficient of AGE: ( It can be argued that AGE should have a positive effect on earnings (more experience?). Test this hypothesis by performing a one-sided test that H0: beta1 <= 0 against H1: beta1 > 0. The t-statistic in this case is and the 1% critical value is so that the conclusion for the null hypothesis H0 is (type REJECT or DO NOT REJECT) )

ahe 36.53845978 34 10.98901081 32 30 19.23077011 31 34.18803406 33 30.12820435 31 16.82692337 32 38.46154022 30 10.95288467 27 12.01923084 29 11.05769253 32 4.086538315 27 19.23077011 28 16.82692337 34 34 20.19230843 25 18.13186836 30 16.82788467 34 8.653845787 26 19.23077011 31 6.730769157 32 33.65384674 25 15 age 8