Use the following output to answer this question. a. List the 90 and 99 percent

Question

Use the following output to answer this question.

a. List the 90 and 99 percent confidence intervals for the coefficient estimate of Age.

. reg WTP Age Number of obs F(1, 14539) Source df MS 14,541 256.14 0.0000 0.0173 ?·0172 94.774 Model Residual 2300659.76 1 2300659.76 Prob > F 130590089 14,539 8982.05437 R-squared Adj R-squared - Total 132890748 14,540 9139.66632 Ro MSE WTP Coef. Std. Err. [95% Conf. Interval] 6945853 62.33378 2.740339 -.6095163 67.70519 Age 0433997 -.7796543. cons 56.96237

Explanation / Answer

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.
90% CI is Coeff+/- Z*Std.Err = -.695+/- 1.645*.0434 = -.766 to .624

99% CI is Coeff+/- Z*Std.Err = -.695+/- 2.575*.0434 = -0.810 to -0.580

b. Test statistic is X-0/SE = -.695/.0434 = -16.01, Critical value at 1% significance is +/- 2.575. Since, -16.01 is beyond +/- 2.575
we conclude that Ho is rejected and that this variable "Age" is significant

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