Explain your answer including the test null hypothesis

by 13:00 (UK time) on 26 NOVEMBER 2021. This copy will automatically be

scanned through a text matching system (designed to check for possible plagiarism).

first page of the assignment.

General Instructions
1. This assignment is individual.

5. Word limit: 3,000. The rule of 10% extra words apply. Footnotes, appendices and

references do not count.

provides a data set of 706 workers from public and private sectors in the UK. The description

of the variables in the file is given below:

(a) Write out the estimated equation corresponding to the regression above.

(b) Provide an interpretation to the coefficient estimates of that regression. What is the meaning of the estimated intercept in this equation?

Q3. Perform a White test for heteroscedasticity in the residuals of the model including all steps involved. [5 marks]

Note: Provide also the auxiliary regression and explain the meaning of the null hypothesis for the test.

hypothesis for the test.

Q5. Test for autocorrelation in the residuals using the Durbin-Watson test, specifying all

including all steps involved. [5 marks]

a. Comment on the implications of your JB test results on the properties of the OLS

the model. Explain your answer using EViews outputs.

(b) Assuming that there is multicollinearity between those variables:

respecting the variable SPORT. [10 marks]

(a) Provide the estimation for the two subsamples involved in the test.

Q9. Is there evidence that workers who do regular exercise sleep more than those who do not? How strong is the evidence? Show all steps of the corresponding test to answer these questions. [5 marks]

Q10. Answer both parts: [8 marks]

Q13. Add the following variable to the model in Q1: YNGKID = dummy equal to 1 indicating the presence of a young child; 0 otherwise. [10 marks]

(a) Interpret the coefficient estimate of variable YNGKID.

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