Three equations for the course average of ADMS are estimated as follows. The first equation is...

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Statistics

Three equations for the course average of ADMS are estimated asfollows. The first equation is for men, and the second equation isfor women. The third equation combines men and women.

??=20.52+13.60?1+0.670?2 n = 406, R2 = 0.4025, SSR =38,781.38
(3.72) (0.94) (0.150)
??=13.79+11.89?1+1.03?2 n = 408, R2 = 0.3666, SSR = 48,029.82
(4.11) (1.09) (0.18)
?=15.60+3.17?+12.82?1+0.838?2 n = 814, R2 = 0.3946, SSR =87,128.96
(2.80) (0.73) (0.72) (0.116)

Where ym = course average for men, yw= course average for women, x1= overall GPA, x2 = ACT score, m = 1 for men.

A. You are to conduct Chow test that the regression equations aresame for men and women:
- 1. State the hypotheses.
- 2. Compute the test statistic
- 3. Based on the computed value above, draw your conclusion (showyour educated guess without the table)

B. With the third equation, test if the dummy variable issignificant.

C. With the two tests conducted above, do you find anyinconsistency? If yes, how can you interpret this outcome?

Answer & Explanation Solved by verified expert

4.5 Ratings (837 Votes)

ANSWERGiven thata1The null hypothesis for the test is define as there is no breakpoint such that2The test statistic is obtained using the formulaWhereRSS Residual sum of square for combined model 8712896RSS1 Residual sum of See Answer

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