# Sample slope is an observation/ case in a _________

QUESTION 1

1. Sample slope is an observation/ case in a _________
 a. sample distribution. b. population distribution. c. sampling distribution of sample slopes. d. None of the above.

QUESTION 2

1. The “crmrte” variable is crime rate. d87 is the variable that equal 1 if it is in 1987 and 0 if in 1982.

—————————————————————————

crmrte |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]

————-+—————————————————————-

d87 |   6.163754   6.223367     0.99   0.325     -6.20005    18.52756

_cons |    97.7089   4.400585    22.20   0.000     88.96638    106.4514

——————————————————————————

Which of the following statements is the most correct?

 a. We fail to reject the null hypothesis that the crime rate in 1987 is the same as the crime rate in 1982 because 0.325>0.05. b. We fail to reject the null hypothesis that the crime rate in 1987 is the same as the crime rate in 1982 because 0 is in the 95% confidence interval. c. We fail to reject the null hypothesis that the crime rate in 1987 is the same as the crime rate in 1982 because 6.16 is in the 95% confidence interval. d. a&b. e. All of the above.

QUESTION 3

1. After running the “regress” command in STATA, the default t-obtained reported in STATA is under the null hypothesis that _____
 a. The hypothesized population slope=0. Or there is no association between the dependent and independent variables. b. The hypothesized population slope=0. There is an association between dependent and independent variables. c. It doesn’t matter what the hypothesized population slope is because the t-obtained is the same regardless of the hypothesized population value. d. The hypothesized population slope is not 0. There is an association between dependent and independent variables.

QUESTION 4

1. After running the “regress” command in STATA, the default p-value reported in STATA is under the null hypothesis that _______________
 a. The hypothesized population slope=0. Or there is no association between the dependent and independent variables. b. The hypothesized population slope=0. There is an association between dependent and independent variables. c. It doesn’t matter what the hypothesized population slope is because the p-value is the same regardless of hypothesized population value. d. The hypothesized population slope is not 0. There is an association between dependent and independent variables.

QUESTION 5

1. After running the “regress” command in STATA, the default 95% CI reported in STATA  is under the null hypothesis that ___________
 a. The hypothesized population slope=0. Or there is no association between the dependent and independent variables. b. The hypothesized population slope=0. There is an association between dependent and independent variables. c. It doesn’t matter what the hypothesized population slope is because the 95%CI is the same regardless of the hypothesized population value. d. The hypothesized population slope is not 0. There is an association between dependent and independent variables.

Problem Set 10_OLS Simple Regression_Part2

QUESTION 1

1. The 401K.DTA dataset on Blackboard left panel “Dataset” are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the percentage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker’s plan for each \$1 contribution by the worker. For example, if mrate= 0.50, then a \$1 contribution by the worker is matched by a 50cent contribution by the firm.

prate= a+b*mrate

Run the above regression equation in STATA. Do the data provide convincing evidence that the participation rate of the 401K is correlated with the plan match rate in the population? Explain.

QUESTION 2

1. The 401K.DTA dataset on Blackboard left panel “Dataset” are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the percentage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker’s plan for each \$1 contribution by the worker. For example, if mrate= 0.50, then a \$1 contribution by the worker is matched by a 50cent contribution by the firm.

prate= a+b*mrate

Run the above regression equation in STATA. Based on the p-value reported in the regression, can you reject the null that the population slope is 5? Explain.

QUESTION 3

1. Copy of

The 401K.DTA dataset on Blackboard left panel “Dataset” are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the percentage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker’s plan for each \$1 contribution by the worker. For example, if mrate= 0.50, then a \$1 contribution by the worker is matched by a 50cent contribution by the firm.

prate= a+b*mrate

Run the above regression equation in STATA. What are the null hypothesized population slope values that you can reject at a 5% significance level?

QUESTION 4

1. The 401K.DTA dataset on Blackboard left panel “Dataset” are a subset of data analyzed by Papke (1995) to study the relationship between participation in a 401(k) pension plan and the generosity of the plan. The variable prate is the percentage of eligible workers with an active account; this is the variable we would like to explain. The measure of generosity is the plan match rate, mrate. This variable gives the average amount the firm contributes to each worker’s plan for each \$1 contribution by the worker. For example, if mrate= 0.50, then a \$1 contribution by the worker is matched by a 50cent contribution by the firm.

prate= a+b*mrate

Run the above regression equation in STATA. Interpret the 95% CI for the slope in terms of the relationship between prate and mrate.

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