Express null hypothesis to be tested in terms of ßa and ßb

Assignment Help Econometrics

Reference no: EM131160612

Refer to Exercises 3 and 4. An atmospheric scientist notices that the slope of the least-squares line in the study described in Exercise 4 differs from the one in the study described in Exercise 3. He wishes to test the hypothesis that the effect of humidity on ozone level differs between the two cities. Let βA denote the change in ozone level associated with an increase of 1% relative humidity for the city in Exercise 3, and βB denote the corresponding increase for the city in Exercise 4.

a. Express the null hypothesis to be tested in terms of βA and βB .

b. Let βˆ A and βˆ B denote the slopes of the least-squares lines. Assume these slopes are independent. There are 120 observations in each data set. Test the null hypothesis in part (a). Can you conclude that the effect of humidity differs between the two cities?

Reference no: EM131160612

Questions Cloud

Pete driving at an excessive rate : The ATV manufacturer claims that the ATV is not defectively designed and that the rollover was caused by Pete driving at an excessive rate of speed around a corner.

Consider executive compensation : In all of our previous discussions about compensation levels, we never discussed the possibility that employees were paid too much. What is different about paying CEO’s that makes overpayment a possibility? Consider the two models of CEO pay: skimmin..

How to make a presentation on amended business plan : How to make a Presentation on Amended Business Plan for start-up business (what to include). If it possible can you sent me please an example.

What is the current world population : What is the current U.S. population? What is the current world population? Considering those numbers, do you think the United States is in a population crisis? Do we have enough land and resources to support a continuous increase in population?

Express null hypothesis to be tested in terms of ßa and ßb : Let βˆ A and βˆ B denote the slopes of the least-squares lines. Assume these slopes are independent. There are 120 observations in each data set. Test the null hypothesis in part (a). Can you conclude that the effect of humidity differs between th..

Make sense for most employees at the firm : Your firm has been offering a combination of salary and stock options for employees. An entry level electrical engineer earns $75,000 plus $25,000 in stock options. Your accountant tells you this is cheaper than paying him only in salary. Explain why..

Can anyone be a change agent within an organization : Can anyone be a change agent within an organization? If so, what makes this type of environment effective for successful change? If not, who would be the change agents and why?

Who gains and who loses from import restrictions : If it would be cheaper to give each steelworker $375,000 per year in cash rather than impose restrictions on steel imports, why do we have the import restrictions rather than the cash payments? Who gains and who loses from import restrictions? In ans..

Compute 95% confidence intervals for ß0 and ß1 : Compute the least-squares line for predicting evaporation (y) from temperature (x).

User Account

All Pages