In the multiple regression model with two explanatory variables the OLS estimators for the three parameters are as follows (small letters refer to deviations from means as in ):
You have collected data for 104 countries of the world from the Penn World Tables and want to estimate the effect of the population growth rate and the saving rate (average investment share of GDP from 1980 to 1990 ) on GDP per worker (relative to the U.S.)in 1990.The various sums needed to calculate the OLS estimates are given
below: The heteroskedasticity-robust standard errors of the two slope coefficients are 1.99 (for
population growth)and 0.23 (for the saving rate).Calculate the 95% confidence interval
for both coefficients.How many standard deviations are the coefficients away from zero?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q8: For a single restriction (q = 1),
Q19: The confidence interval for a single
Q21: The OLS estimators of the coefficients
Q22: The Solow growth model suggests that
Q23: A subsample from the Current Population
Q26: The cost of attending your college
Q27: Set up the null hypothesis and alternative
Q28: You have collected data from Major
Q29: At a mathematical level, if the
Q30: If the estimates of the coefficients of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents