You Have Estimated the Following Regression to Explain Hourly Wages

question 33

Essay

You have estimated the following regression to explain hourly wages, using a sample of
250 individuals: $$\begin{aligned}\text { AHE } _ { i } = & - 2.44 - 1.57 \times \text { DFemme } + 0.27 \times \text { DMarried } + 0.59 \times \text { Educ } + 0.04 \times \text { Exper } - 0.60 \times \text { DNonwhite } \\& ( 1.29 ) ( 0.33 ) \quad \quad\quad\quad\quad\quad\quad( 0.36 )\quad\quad\quad\quad\quad\quad \quad ( 0.09 ) \quad\quad\quad\quad\quad ( 0.01 )\quad\quad\quad\quad\quad(0.49) \\\\& + 0.13 \times \text { NCentral } - 0.11 \times \text { South } \\& ( 0.59 ) \quad \quad\quad\quad\quad\quad\quad( 0.58 ) \\\\& R ^ { 2 } = 0.36 , S E R = 2.74 , n = 250\end{aligned}$$

Test the null hypothesis that the coefficients on DMarried, DNonwhite, and the two regional variables, NCentral and South are zero. The $F$ -statistic for the null hypothesis $\beta _ { \text {maxriad } } = \beta _ { \text {momwhite } } = \beta _ { \text {noentral } } = \beta _ { \text {saurh } } = 0$ is $0.61$ . Do you reject the null hypothesis?

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, fulfilling similar needs or desires for the consumer.

Relevant Time Period

The specific duration during which certain actions are undertaken or conditions apply, significant for analysis or decisions.

Price Elasticity

An indicator that measures the impact of price change on the demand for a good.

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