Borrowing from Table 8.5 in Chapter 8, consider the regression model: where MJ is the past-month-marijuana-use rate for 12–17-year-olds in a state in 2009–10, UR is the average state unemployment rate...

Borrowing from Table 8.5 in Chapter 8, consider the regression model:

where MJ is the past-month-marijuana-use rate for 12–17-year-olds in a state in 2009–10, UR is the average state unemployment rate for 2009–10, and there are 51 observations (50 states plus DC). The results are the following, with the standard errors in parentheses below the coefficient estimate

a. Give the formal null and alternative hypotheses for whether the variable UR has a coefficient that is different from zero. b. Give the formal null and alternative hypotheses for whether the variable UR has a positive coefficient. c. Calculate the t-stat for the coefficient estimate on UR. d. Determine the critical values for the two-sided test on that coefficient for tests at the 1%, 5%, and 10% levels. Is the coefficient estimate statistically significant at those levels? e. Determine the critical value for the one-sided hypothesis test (at the 5% significance level) on that estimate to test if it is positive. What is the conclusion of the hypothesis test? f. Calculate the 95% confidence interval for the coefficient estimate on UR.