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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
5.8. Consider the following regression output†:ˆYi = 0.2033 + 0.6560Xtse = (0.0976) (0.1961)r 2 = 0.397 RSS = 0.0544 ESS = 0.0358where Y = labor force participation rate (LFPR) of women in 1972 andX = LFPR of women in 1968. The regression results were obtained from asample of 19 cities in the United States.a. How do you interpret this regression?b. Test the hypothesis: H0: ß2 = 1 against H1: ß2 > 1. Which test do youuse? And why? What are the underlying assumptions of the test(s) youuse?c. Suppose that the LFPR in 1968 was 0.58 (or 58 percent). On the basisof the regression results given above, what is the mean LFPR in 1972?Establish a 95% confidence interval for the mean prediction.d. How would you test the hypothesis that the error term in the populationregression is normally distribute? Show the necessary calculations.
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