and zero otherwise. 3 a sample of recent high school graduates in the US, you are interested in estimating the following

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And Zero Otherwise 3 A Sample Of Recent High School Graduates In The Us You Are Interested In Estimating The Following 1 (53.81 KiB) Viewed 28 times

and zero otherwise. 3 a sample of recent high school graduates in the US, you are interested in estimating the following BLP: atj hsize, hsize?, female, black, femalex black} = Bo+B, hsize+Bahsize? +P3 female+Bablack+Bs femalex black (3) here the variables are: sat is the combined SAT score; hsize is the size of the student's high school graduating das, in hundreds, female is a gender dummy variable; black is a race dummy variable equal to one for flacks, The estimation results are in Table 2. The standard errors are in parenthesis, below the estimated coefficient. The estimate for the variance covariance matrix is provided in table 3. (a) (15%) Is there strong evidence that hsize should be included in the model? From this equation, what is (6) (15%) Holding hsize fixed, what is the estimated difference in SAT score between nonblack females and nonblack males? Construct a hypothesis test in which the null hypothesis is that there is no difference between nonblack females and nonblack males vs the alternative that there is a difference. Test it at the the optimal high school size? 1% level. Source: Wul Dircriminate on the Race and Income
difference at the 5% level. level (c) (15%) What is the estimated difference in SAT score between nonblack males and black males? Test the null hypothesis that there is no difference between their scores, against the alternative that there is a (d) (25%) What is the estimated difference in SAT score between black females and nonblack females? Con- struct the relevant hypothesis test to test whether this difference is significant or not and test it at the 1% (e) (30%) Consider student A, which graduated from a high school class of 400 (hsize=4), is female and black Student B graduated from a high school class of 500 (hsize = 5) and is also female and not black Let Band A respectively. Delineate a procedure that will allow you to construct a 95% confidence interval Asat = sat-satdenote the difference in SAT scores where sats and sata are the SAT scores of students around Asat. Be precise and detailed in describing your procedure. For an appropriately defined vector 2 for this problem, you may find useful the following computation AT2 = 136.5755. Bonus Question: What is Prof. Alejandro's favorite animal? (3 points if you name the animal + 2 points if you name it in Spanish.) Table 1: Estimation results for problem 2 Dependent variable: Ipsoda (1) (2) 0.073** 0.098*** (0.035) (0.030) prpblck lincome 0.137*** (0.026) -0.053 (0.035) propov 0.380** (0.135) 0.052 (0.125) lhseval 0.121 (0.017) Constant -1.463*** (0.285) -0.842*** (0.271) Observations R2 Adjusted R2 Global significance Wald statistic Note 401 401 0.087 0.184 0.080 0.176 39.35043 104.145 *p<0.1; **p<0.05; ***p<0.01