## OLS Regression STATA Output

Consider the following estimation from Microfit: Ordinary Least Squares Estimation  Dependent variable is LC (49 observations) used for estimation from (1950-1998): LC: Log of real customers expenditure in 1995 prices. LY: Log of real personal disposable income in 1995 prices. LP: Log of the consumer price index.   a) Briefly explain what the results tell … Continue reading OLS Regression STATA Output

## 2nd Worksheet OLS Results Analysis

Consider the second OLS results for a Lgpa model in which international student, ATAR, Exam night study time, study time, exam night study time squared and a constant. Number of jobs = 924 F (6, 924) = 81.21 Prob > F = 0.000 R squared = 0.2103 Adjusted R squared = 0.2088   Lgpa    … Continue reading 2nd Worksheet OLS Results Analysis

## Worksheet OLS Results Analysis

Consider the following OLS results for a wage model in which education, tenure, tenure squared, experience, experience squared and a dummy variable equal to 1 if the individual is a female and zero otherwise are the explanatory variables: Number of jobs = 526 F (6, 519) = 68.18 Prob > F = 0.000 R squared … Continue reading Worksheet OLS Results Analysis

## Hypothesis Testing Step-by-Step

To conduct hypothesis testing: 1.Create null and alternative hypothesis 2.Calculate z or t test statistics 3.Get the critical value from z or t table 4.Compare calculated value from step 2 with critical value from step 3. 1. “The null hypothesis is denoted by H0, and the alternative hypothesis is denoted by H1.” (Mann, 2010, p.382) … Continue reading Hypothesis Testing Step-by-Step

## Simple 4 Step T Test

The t-statistic was introduced in 1908 by William Sealy Gosset, a chemist working for the Guinness brewery in Dublin, Ireland. “Student” was his pen name. Gosset had been hired owing to Claude Guinness’s policy of recruiting the best graduates from Oxford and Cambridge to apply biochemistry and statistics to Guinness’s industrial processes. Gosset devised the t-test as an economical way to monitor the quality of stout.  When given a t-test question, we must first find the following: … Continue reading Simple 4 Step T Test