Mathematics, 27.03.2021 04:50 hardwick744
Now consider the regression model with an interaction term between AfrAmerican and educ: log(earnings) = Bo + B1AfrAmerican + B2educ + B3(AfrAmerican x educ) + uYou estimate the model in STATA and get the following results: Logearnings | Coef. Std. Err. t P > |t| 95% Conf. Interval] AfrAmerican | -.1464599 .1539514 -0.95 0.341 -.4482906 .1553708educ | .0811062 .00476 17.03 0.341 .0717702 .0904422interaction | -.0036963 .0120871 -0.31 0.760 -.0273937 .020001-cons .8290515 .0630207 13.16 0.000 .7054959 .9526072 1. Interpret all of the estimated parameters of the model. 2. In terms of the parameters of the model in part 2, write down the null hypothesis that African American workers have at least the same rate of return to education as non-African American workers. What do you conclude at the 5% significance level based on the STATA output, and why?3. Write the null an alternative hypotheses for each of the following; i) Test the null hypothesis that the intercept is the same for African Americans and non-African Americans. ii) Test the null hypothesis that the returns to education are the same for African Americans and non-African Americans. iii) Write down the null hypothesis that earnings are the same for African Americans and non- African Americans who have the same level of education. What is the alternative hypothesis?
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Now consider the regression model with an interaction term between AfrAmerican and educ: log(earning...
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