Could you help me to interprete these? f) Add the two college tuition variables
ID: 3182702 • Letter: C
Question
Could you help me to interprete these?
f) Add the two college tuition variables (tuit17 and tuit18) to the model in part (c). The tuition variables measure the average tuition at by public colleges when the men are 17 and 18 years old. near respectively. Estimate the model and use the test command to test whether the two college tuition variables are jointly statistically significant. Write down the null hypothesis and the alternative hypothesis for the test. Evaluate the hypothesis test using the p-value associated with the F- statistic g) Use the corr command to find the correlation between tuit17 and tuit18. Explain why using the average tuition over two years might be preferred to adding both tuition variables to the model as separate explanatory variables. Create a variable for average tuition and re-estimate the model using this variable (but exclude tuit 17 and tuit18). What happens to the statistical significance of tuition when you use the average over two years h) Do the results for the average tuition variable make sense when interpreted causally? What might be going on?Explanation / Answer
here we can interpriate through p-value from the table
rules for p-value
p-value < significant level =0.05 (usually) then reject null hypothesis that equality to the parameter to zero
p-value > significant level =0.05 (usually) then fail to reject(accept) null hypothesis that equality to the parameter to zero
as a result from table F both for tuit17 and tuit18 has p-value >0.05 so that these has no effect on the regression
hence except these tuo variable the regression has done in last