STATA Final

Q2) a) . regress arr86 pcnv avgsen tottime ptime86 qemp86

Source | SS df MS Number of obs = 2,725

-------------+---------------------------------- F(5, 2719) = 27.03
Model | 25.8452455 5 5.16904909 Prob > F = 0.0000
Residual | 519.971268 2,719 .191236215 R-squared = 0.0474
-------------+---------------------------------- Adj R-squared = 0.0456
Total | 545.816514 2,724 .20037317 Root MSE = .43731

------------------------------------------------------------------------------
arr86 | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
pcnv | -.1624448 .0212368 -7.65 0.000 -.2040866 -.120803
avgsen | .0061127 .006452 0.95 0.344 -.0065385 .018764
tottime | -.0022616 .0049781 -0.45 0.650 -.0120229 .0074997
ptime86 | -.0219664 .0046349 -4.74 0.000 -.0310547 -.0128781
qemp86 | -.0428294 .0054046 -7.92 0.000 -.0534268 -.0322319
_cons | .4406154 .0172329 25.57 0.000 .4068246 .4744063
------------------------------------------------------------------------------

b) sum yhat

Variable | Obs Mean Std. Dev. Min Max

-------------+---------------------------------------------------------
yhat | 2,725 .2770642 .0974062 .0066431 .5576897

Min = 0.0066431
Max = 0.5576897

c) The difference is 0.1624. The standard error = 0.0212368

d) test avgsen tottime

( 1) avgsen = 0
( 2) tottime = 0

F( 2, 2719) = 1.02
Prob > F = 0.3618

It is not significant. F = 1.02 and P value = 0.3618

Q3) a) reg sprdcvr

Source | SS df MS Number of obs = 553

-------------+---------------------------------- F(0, 552) = 0.00
 Model | 0 0 . Prob > F = .
Residual | 138.119349 552 .250216212 R-squared = 0.0000
-------------+---------------------------------- Adj R-squared = 0.0000
Total | 138.119349 552 .250216212 Root MSE = .50022

------------------------------------------------------------------------------
sprdcvr | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
_cons | .5153707 .0212714 24.23 0.000 .473588 .5571534
------------------------------------------------------------------------------

0.51537070.5/0.212714 = 0.722259
Therefore the null cannot be rejected at 10% significance level

b) tab neutral

=1 if |
neutral |
site | Freq. Percent Cum.
------------+-----------------------------------
0| 518 93.67 93.67
1| 35 6.33 100.00
------------+-----------------------------------
Total | 553 100.00

Therefore 35

c) Practically most significant is favhome because the coefficient is largest

And statistically most significant is neutral because the t test is most significant

d) SSTx=SSR as SSE=0 because there are no explanatory variables to change the

Var(u). Therefore, there cant be heteroskedasticity

e) At 5% significance level, c=2.3719. It is not significant, hence we cannot reject

the null hypothesis

f) It is not systematically possible to predict since, according to the F-Test, the

variables are not significant enough