t-test beta2=100

Problem

Consider the Crime data at http://www.oswego.edu/~kane/econometrics/data.htm . Run a regression with y = crime, x2 = pov, x3 = metro, x4 = popdens. \(α=0.05\)

Test \(H_0: β_2=100\) . Hint: Use View (from the equation box) / Coefficient diagnostics / Wald test. Alternatively, you can do a command: eq01.wald c(2)=100

Solution

You can use either of the three p-values. We cannot reject this hypothesis.