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## Suppose you would like to test the hypothesis that one year of attending a university is worth three years of attending a two-year school (j

Question

Suppose you would like to test the hypothesis that one year of attending a university is worth three years of attending a two-year school (junior college), in terms of effect on wages, using the following econometric model:log(wage)=β0+β1jc+β2univ+β3exper + uwhats the Null?

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2021-07-29T19:30:02+00:00
2021-07-29T19:30:02+00:00 2 Answers
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## Answers ( )

Answer:Explanation:A null hypothesis (is a hypothesis that says there is no statistical significance between the two variables. It is usually the hypothesis a researcher or experimenter will try to disprove or discredit.An alternative hypothesisis a hypothesis that states there is a statistically significant relationship between two variables.In this example, the hypothesis to test is that one year of attending a university is worth 3 years of attending a two-year junior college

If the number of years of attending a university, and

the number of years of attending a junior college

Since 3 years of attending the junior college is equivalent to 1 year of attending the university, the null hypothesis is given by:

Answer:Explanation:The null hypothesis is the hypothesis that there is

no significant differencebetween specified populations and that any observed difference is due to sampling/experimental error.We would like to test that

oneyear of attending a university with regression parameter is worth3 yearsof attending a junior college with regression parameter in terms of the wages earned.In the model:

The null hypothesis will therefore be: