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Chapter 3 Application 1

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30 views1 page

Chapter 3 Application 1

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Gu
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Application Exercise

Chapter 3 Application 1

X1 = one, educ, exp, ability


X2 = mother-ed, father-ed, sibs

A. Compute the least squares regression coefficients in the regression of y on X1.


Report the coefficients.

Regress; Lhs = wage; Rhs = x1

Ordinary least squares regression


LHS=WAGE Mean = 2.059333
Standard deviation = .2583869
WTS=none Number of observs. = 15
Model size Parameters = 4
Degrees of freedom = 11
Residuals Sum of squares = .7633163
Standard error of e = .2634244
Fit R-squared = .1833511
Adjusted R-squared = -.3937136E-01
Model test F[ 3, 11] (prob) = .82 (.5080)

Variable Coefficient Standard Error t-ratio P[|T|>t] Mean of X

Constant 1.66364000 .61855318 2.690 .0210


EDUC .01453897 .04902149 .297 .7723 12.8666667
EXP .07103002 .04803415 1.479 .1673 2.80000000
ABILITY .02661537 .09911731 .269 .7933 .36600000

B. Compute the least squares regression coefficients in the regression of y on X1 and X2. Report the coefficients

Regress; Lhs = wage; Rhs = x1, x2

Ordinary least squares regression


LHS=WAGE Mean = 2.059333
Standard deviation = .2583869
WTS=none Number of observs. = 15
Model size Parameters = 7
Degrees of freedom = 8
Residuals Sum of squares = .4522662
Standard error of e = .2377673
Fit R-squared = .5161341
Adjusted R-squared = .1532347
Model test F[ 6, 8] (prob) = 1.42 (.3140)

Variable Coefficient Standard Error t-ratio P[|T|>t] Mean of X

Constant .04899633 .94880761 .052 .9601


EDUC .02582213 .04468592 .578 .5793 12.8666667
EXP .10339125 .04734541 2.184 .0605 2.80000000
ABILITY .03074355 .12120133 .254 .8062 .36600000
MOTHERED .10163069 .07017502 1.448 .1856 12.0666667
FATHERED .00164437 .04464910 .037 .9715 12.6666667
SIBS .05916922 .06901801 .857 .4162 2.20000000

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