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For the Following Estimated Slope Coefficients and Their Heteroskedasticity Robust H0:β1=0H _ { 0 } : \beta _ { 1 } = 0

Question 36

Essay

For the following estimated slope coefficients and their heteroskedasticity robust standard errors, find the t -statistics for the null hypothesis H0:β1=0H _ { 0 } : \beta _ { 1 } = 0 Assuming that your sample has more than 100 observations, indicate whether or not you are able to reject the null hypothesis at the 10 %, 5 % , and 1 % level of a one-sided and two-sided hypothesis.
(a) β^1=4.2,SE(β^1)=2.4\hat { \beta } _ { 1 } = 4.2 , S E \left( \hat { \beta } _ { 1 } \right) = 2.4
(b) β^1=0.5,SE(β^1)=0.37\hat { \beta } _ { 1 } = 0.5 , S E \left( \hat { \beta } _ { 1 } \right) = 0.37
(c) β^1=0.003,SE(β^1)=0.002\hat { \beta } _ { 1 } = 0.003 , S E \left( \hat { \beta } _ { 1 } \right) = 0.002
(d) β^1=360,SE(β^1)=300\hat { \beta } _ { 1 } = 360 , S E \left( \hat { \beta } _ { 1 } \right) = 300

Correct Answer:

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(a) t=1.75 ; reject null 10% level of...

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