OLS, using observations 1-710 Dependent variable: RST coefficient std. error t-ratio
Posted: Wed Jul 06, 2022 12:21 pm
OLS, using observations 1-710
Dependent variable: RST
coefficient std. error t-ratio p-value
----------------------------------------------------------------------------------------------------------
const 3938.42 137.673 28.61 5.15e-120 ***
TOTWRK −0.192876 0.0192575 −10.02 3.65e-22 ***
EDUC −17.5917 6.79463 −2.589 0.0098 ***
AGE 3.32013 1.75262 1.894 0.0586 *
MARR 13.0016 48.2111 0.2697 0.7875
KID −20.4220 57.8670 −0.3529 0.7243
Mean dependentvar 3441.238 S.D. dependentvar 522.6869
Sum squaredresid 1.66e+08 S.E. ofregression 484.8888
R-squared 0.145469 AdjustedR-squared 0.139400
F(5,704) 23.96884 P-value(F) 2.64e-22
Log-likelihood −5395.017 Akaikecriterion 10802.03
Schwarzcriterion 10829.42 Hannan-Quinn 10812.61
Excluding the constant, p-value washighest for variable 6 (MARR)
a. Are the coefficients for MARR and KID in Part 05 jointlysignificant at 5% level? Should we keep both MARR and KID in ouranalysis or not? Show the steps involved in your justification.
b. If you were to remove both MARR and KID variables from theestimated model in Part 05 above, what would be the new estimatedmodel? Write down the new estimated model in the form of Equation5.8 of the textbook.
Dependent variable: RST
coefficient std. error t-ratio p-value
----------------------------------------------------------------------------------------------------------
const 3938.42 137.673 28.61 5.15e-120 ***
TOTWRK −0.192876 0.0192575 −10.02 3.65e-22 ***
EDUC −17.5917 6.79463 −2.589 0.0098 ***
AGE 3.32013 1.75262 1.894 0.0586 *
MARR 13.0016 48.2111 0.2697 0.7875
KID −20.4220 57.8670 −0.3529 0.7243
Mean dependentvar 3441.238 S.D. dependentvar 522.6869
Sum squaredresid 1.66e+08 S.E. ofregression 484.8888
R-squared 0.145469 AdjustedR-squared 0.139400
F(5,704) 23.96884 P-value(F) 2.64e-22
Log-likelihood −5395.017 Akaikecriterion 10802.03
Schwarzcriterion 10829.42 Hannan-Quinn 10812.61
Excluding the constant, p-value washighest for variable 6 (MARR)
a. Are the coefficients for MARR and KID in Part 05 jointlysignificant at 5% level? Should we keep both MARR and KID in ouranalysis or not? Show the steps involved in your justification.
b. If you were to remove both MARR and KID variables from theestimated model in Part 05 above, what would be the new estimatedmodel? Write down the new estimated model in the form of Equation5.8 of the textbook.