ECON 122B Midterm: Midterm_Key
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Question 2 (a) (b) (c) cts = (252) + (64. 15)(20) (3. 1)(202) (5. 47)(0) (0. 42)(1) + (11. 75)(2. 7) = 0. 5875 (d) a 95% con dence interval for b 5 is 11. 75 1. 96 1. 78 = [8. 26, 15. 24] (e) h0 : 2 = 0 versus h1 : 2 6= 0. 1. 24 = 2. 5, so since |t| = 2. 5 > 1. 96 we can reject h0 at 5% signi cance level (f) for testing 1 = 0, t = 64. 15. Refer to z-table = p-value is 2 0. 0075 = 0. 015. Question 3 (a) when age increases from 33 to 35 ahe is expected to change by 2 0. 585 = 1. 17 (b) tage = 17. 39125 = 0. 211 (d) (i) h0 : 1 = 0 , 2 = 0 , 3 = 0 versus h1 : at least one i 6= 0 for i = 1, 2, 3 (ii) f3, (iii) 2. 60. In a log-linear model y increases ahe by 100 b 1(35 33) 5. 5%
