This topic contains a solution. Click here to go to the answer

Author Question: In the Fixed Effects regression model, using (n 1) binary variables for the entities, the ... (Read 163 times)

RYAN BANYAN

  • Hero Member
  • *****
  • Posts: 563
In the Fixed Effects regression model, using (n  1) binary variables for the entities, the coefficient of the binary variable indicates
 
  A) the level of the fixed effect of the ith entity.
  B) will be either 0 or 1.
  C) the difference in fixed effects between the ith and the first entity.
  D) the response in the dependent variable to a percentage change in the binary variable.

Question 2

Explain carefully the relationship between a confidence interval, a one-sided hypothesis test, and a two-sided hypothesis test. What is the unit of measurement of the t-statistic?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

InfiniteSteez

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

Answer: C

Answer to Question 2

Answer: In the case of a two-sided hypothesis test, the relationship between the t-statistic and the confidence interval is straightforward. The t-statistic calculates the distance between the estimate and the hypothesized value in standard deviations. If the distance is larger than 1.96 (size of the test: 5), then the distance is large enough to reject the null hypothesis. The confidence interval adds and subtracts 1.96 standard deviations in this case, and asks whether or not the hypothesized value is contained within the confidence interval. Hence the two concepts resemble the two sides of a coin. They are simply different ways to look at the same problem. In the case of the one-sided test, the relationship is more complex. Since you are looking at a one-sided alternative, it does not really make sense to construct a confidence interval. However, the confidence interval results in the same conclusion as the t-test if the critical value from the standard normal distribution is appropriately adjusted, e.g. to 10 rather than 5. The unit of measurement of the t-statistic is standard deviations.




RYAN BANYAN

  • Member
  • Posts: 563
Reply 2 on: Jun 29, 2018
Wow, this really help


connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

 

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

For a complete list of videos, visit our video library