The results of the test whether the three newly included var

The results of the test whether the three newly included variables have a significantly joint effect on the wage are presented in the Eviews output (below) In your test you should clearly state both the Null and Alternative Hypotheses, you decision based on the decision rule and the implications (conclusion in the context of the problem : Which of the two models explains better the changes of the wages?

Solution

SOl)

To find the homogenity of several means we use F test.Chi square in not advisable.

Null hypothesis:

All the means are equal

Alternative hypothesis:

All the means are not equal

F statistic:

F statistic =19.16502

Conclusion: P value=0.000

and alpha =0.05

p value < alpha then we reject the null hypothesis.