Suppose you are estimating salary as a function of age,education,hours of work and the number of young children and you are concerned that the salary functions differ for men and women.You could test this possibility by performing a
A)t-test for individual significance.
B)t-test for joint significance.
C)Chow test.
D)subset test.

Question

Quizplus · Accepted Answer

The Chow test can be used to test for structural break in the relationship between the independent variables and the dependent variable. In this case, it can help determine if there is a significant difference in the salary functions between men and women. The other options, such as t-tests and subset tests, may not be appropriate in testing for structural differences between two groups. Therefore, the best choice is the Chow test.

Suppose You Are Estimating Salary as a Function of Age,education,hours