The questions below are based on a dataset containing the characteristics of 5,407 households. In particular, we will use the following variables: - size: home size, measured in square feet. - hhinc:...

Consider the results in Table 5. After running the regression, we test whether the
variables onwer and hhinc are jointly statistically significant at 5%. The value of the
F-statistic is 323.27. Note that the sample size is 1,593. What is the outcome of the
test? Would it be correct to reject the null hypothesis if either the t-statistic for hhinc
or the t-statistic for owner exceeded 1.96 in absolute value? Explain.

Extracted text: The questions below are based on a dataset containing the characteristics of 5,407 households. In particular, we will use the following variables: - size: home size, measured in square feet. - hhinc: annual household net income, measured in euros. - owner. dummy variable equal to 1 if the living space is owned, and 0 if the living space is rented. - hhsize1: dummy variable equal to 1 if the number of household's members is 1 or 2, and 0 otherwise. hhsize2: dummy variable equal to 1 if the number of household's members is 3 or 4, and 0 otherwise. hhsize3: dummy variable equal to 1 if the number of household's members is 5 or above 5, and 0 otherwise. - edu: education level of household's members. The Appendix contains tables with the critical values of the standard normal distribution and the F distribution.


Extracted text: Table 5 . regress size hhinc owner hhsizel hhsizez hhsize3, robust noconstant Linear regression Nunber of obs 1,593 F(5, 1588) 3895.70 Prob > F 0.0000 R-squared 0.9255 Root MSE 353.16 Robust size Coefficient std. err. t P>|t| (95% conf. interval) hhinc 6.80 0.000 .004567 0006717 0032495 .0058845 owner 404.7925 442.6217 hhsizel 675.8086 24.24222 27.88 0.00 628.2585 723.3587 hhsize2 788.6606 36.47628 21.62 717.1138 860.2073 hhsize) 993.6609 58.63294 16.95 e.000 878.6548 1108.667