Lecture 3 - LRM
Lecture 3 - LRM
REGRESSIO
N
Nguyen Quang qua
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THE IDEA BEHIND REGRESSION
The hypothesis that schooling years has no impact on wage is rejected at 10% (even at
TESTING MULTIPLE COEFFICIENTS: F-TEST
𝑑𝑓- = 𝑛 − 𝑘
𝑑𝑓& = 𝑛 − 𝑚
TESTING MULTIPLE COEFFICIENTS: F-TEST
• Step 4: Decide
• 𝐹 .. > 𝐹∗, 𝑜𝑟
The hypothesis that male, married and age are equal to zero simultaneously is rejected at 1%.
… is the F-test for the null hypothesis
F-TEST FOR that all coefficients are equal to zero
OVERALL simultaneously.
SIGNIFICANC
E
F TEST FOR OVERALL SIGNIFICANCE
The hypothesis that all coefficients are equal to zero simultaneously is rejected at 1%.