Professional Documents
Culture Documents
1. growth
-------------+---------------------------------------------------------------------
tradeshr
-------------+---------------------------------------------------------------------
F( 1, 63) = 12.09
R-squared = 0.1237
-----------------------------------------------------------------------------------------------
| Robust
-------------+---------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
0 .5 1 1.5 2
tradeshr
b)
c) Yes, since the 95% CI for the slope is from .9809608 to 3.631907 and 0 is
not contained in that range the slope is significantly different from 0 at the
5% significance level.
d) .9809608 to 3.631907
e) The R^2 of the regression is 0.1237. This means that .1237 is the
proportion of the sample variance of growth that can be explained by
tradeshr.
f) Growth tradeshr
-------------+-------------------------------
growth | 1.0000
i) Non-Robust
------------------------------------------------------------------------------
-------------+----------------------------------------------------------------
In the tables above we see that taking away the “robust” option changed
the std. error which also means that the t-values, p-values, and
Confidence Intervals are different as well. The new regression has a higher
Std. Err., lower t value, higher p value, and the confidence interval is
wider.
R-squared = 0.0447
------------------------------------------------------------------------------
| Robust
-------------+----------------------------------------------------------------
3. a)
F( 1, 63) = 4.36
R-squared = 0.1000
Root MSE = 1.814
------------------------------------------------------------------------------
| Robust
-------------+----------------------------------------------------------------
b)Since the 95% Confidence Interval does not have 0 in it this means that at
the 5% significance level there appears to be a different mean growth rate for
countries with lorgdp60=0 and countries with lorgdp60=1
The difference of means t-statistic is -2.09 and the p value is .041 meaning
the difference significantly different from 0.