A Sociologist Estimates the Regression Relating Poverty (Y) to Education

question 50

Essay

A sociologist estimates the regression relating Poverty (y) to Education (x₁). The estimated regression equation is: = 71.68 - 0.69x₁; n = 39; SSE = 152.
In an attempt to improve the results, he adds two more explanatory variables: Median Income (x₂, in $1,000s) and the Mortality Rate (x₃, per 1,000 residents). The estimated regression equation is: = 59.80 - 0.44x₁- 0.18x₂ + 0.17x₃; n = 39; SSE = 60.
A) Formulate the hypotheses to determine whether Median Income and the Mortality Rate are jointly significant in explaining Poverty.
B) Calculate the value of the test statistic.
C) At the 5% significance level, find the approximate value of the critical value(s).
D) What is the conclusion to the test?

• A) Formulate the hypotheses to determine whether Median Income and the Mortality Rate are jointly significant in explaining Poverty.
• B) Calculate the value of the test statistic.
• C) At the 5% significance level, find the approximate value of the critical value(s).
• D) What is the conclusion to the test?

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