hypothesis test(1).png  

The error term is assumed to be a random variable with an expected value of zero, and this assumption implies that the variance of Y about the regression line is the same for all values of X.

You are interested in the effect of number of homeruns (HomeRun) on the number of wins (Wins) in 2005 Major League Baseball (MLB) season. Using 2005 MLB data (aggregated at the team level), you run a simple linear regression and get the following results from Stata. MLB2005 ShortAnswerQuestion(1).png Using the Stata output above and α =0.05, answer the following questions.  (a) Develop the null and the alternative hypothesis of the slope coefficient significance test.  (b) Compute the test statistic.  (c) Findf the critical value. (d) Based on your answers above, conclude whether you reject or do not reject the null hypothesis.  (e) Compute the R2.  (f) Construct 95% confidence interval for the slopep coefficient. 

https://courses.rsu.edu/bbcswebdav/pid-72660852-dt-asiobject-rid-48811505_1/xid-48811505_1?Kq3cZcYS15=292a4c725b7b48b0b5641545d1caa3e8&VxJw3wfC56=1761061862&3cCnGYSz89=kruJ7aUdQ133YXhuxTIwqQhPOzk8NSnW0C1bTbLw3EQ%3D

The OLS residuals:

Wage Reg(3).png  We do not reject the null hypothesis that there is no gender wage gap at the 1% level.

The OLS residuals:

Wage Reg(1).png  The wage of female workers, on average, is $20.91.

You have collected data for the 52 countries and estimated the following relationship between the change in the unemployment rate from the previous year ( ∆ u r ^ ) and the growth rate of the respective country real GDP (gy). The results are as follows: unemployment reg.png Assuming that the estimator has a normal distribution, the 95% confidence interval for the slope is approximately the interval:

Which of the following statements is true about the variance of OLS estimates?