Question about regression analysis
Posted: Tue Jun 01, 2010 7:51 pm
[delete]
The usual approach would be to define a "dummy variable," call it D, which equals zero before the crisis and 1 afterwards. You might then run a regression something likeHi, guys, I'm new to econometrics and statistics, and would like someone to please answer a simple question about regression analysis for my research project. Please excuse any lack of proper statistical/econometric terminology, I'm learning :)
Here is the set up:
Two groups (pre-economic crisis and post-economic crisis) of data about family expenditures and educational attainment. I'm asking how educational attainment was affected by the economic crisis.
How useful would it be for me to run a t-test?
Also, what about running a simple regression? I ran a regression y = bx + e where y = xeduc and x = total (expenditure)
The level of significance is 99.99% and found that educational attainment went down after the crisis. Is this even an interesting result?
Thank you very much for all your help. Even if you just respond by saying this is wrong, it will help me. Thank you again.
y = a0 + b0*x + a1*D +b1*d*x + e and use a t-test to test whether b1<0.