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Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 21
In Problem 3.3, we estimated the equation 
where we now report standard errors along with the estimates.
(i) Is either educ or age individually significant at the 5% level against a two-sided alternative Show your work.
(ii) Dropping educ and age from the equation gives
Are educ and age jointly significant in the original equation at the 5% level Justify your answer.
(iii) Does including educ and age in the model greatly affect the estimated tradeoff between sleeping and working
(iv) Suppose that the sleep equation contains heteroskedasticity. What does this mean about the tests computed in parts (i) and (ii)
where we now report standard errors along with the estimates.
(i) Is either educ or age individually significant at the 5% level against a two-sided alternative Show your work.
(ii) Dropping educ and age from the equation gives
Are educ and age jointly significant in the original equation at the 5% level Justify your answer.
(iii) Does including educ and age in the model greatly affect the estimated tradeoff between sleeping and working
(iv) Suppose that the sleep equation contains heteroskedasticity. What does this mean about the tests computed in parts (i) and (ii)
Explanation
Verified
Verified
(i)
With df = 706 - 4 = 702, use the sta...
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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