Essay
In the multiple regression model with two explanatory variables
Yi = β0 + β1X1i + β2X2i + ui
the OLS estimators for the three parameters are as follows (small letters refer to deviations from means as in zi = Zi - ):
You have collected data for 104 countries of the world from the Penn World Tables and want to estimate the effect of the population growth rate (X1i)and the saving rate (X2i)(average investment share of GDP from 1980 to 1990)on GDP per worker (relative to the U.S. )in 1990.The various sums needed to calculate the OLS estimates are given below:
= 33.33;
= 2.025;
=17.313
= 8.3103;
= .0122;
= 0.6422
= - 0.2304;
= 1.5676;
= -0.0520
The heteroskedasticity-robust standard errors of the two slope coefficients are 1.99 (for population growth)and 0.23 (for the saving rate).Calculate the 95% confidence interval for both coefficients.How many standard deviations are the coefficients away from zero?
Correct Answer:

Verified
The 95% confidence interval for the popu...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q14: The general answer to the question of
Q37: The homoskedasticity-only F-statistic is given by the
Q38: A subsample from the Current Population Survey
Q39: You have estimated the relationship between testscores
Q41: You have estimated the following regression to
Q43: The cost of attending your college has
Q44: Analyzing a regression using data from a
Q45: The confidence interval for a single coefficient
Q46: Prove that <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2833/.jpg" alt="Prove that
Q47: The OLS estimators of the coefficients in