INTRODUCTORY ECONOMETRICS EXERCISE 3

The National University of Lesotho

Department of Economics
Lecturer: Mr. L. J. Mantsi
2021/22

Consider the following OLS regression which is run on a cross section sample of Lesotho workers:

1. Provide a precise interpretation of the all the coefficients.

2.Test the hypothesis that the coefficient on female = -0.30. What do you conclude?
3. Provide a test for overall significance of the model. What do you conclude?
4. Precisely interpret the coefficient of determination.
5. Based on 3 and 4; can you say this model best fit the data? For any answer, provide an
econometrically intuitive reason.
6. The 95% confidence interval for educ is provided in the output above. Can you show how
that was arrived at? Also can you say educ is statistically significant or not? Lastly Provide
an appropriate interpretation of that interval.