Suppose that you are looking at consumers\' willingness to pay (WTP) for an inte

Question

Suppose that you are looking at consumers' willingness to pay (WTP) for an internet product. Given the following survey data on consumer preferences, you are faced with the following output:

1)List each of the following: Sum of Squared Residuals, Number of Observations in the sample, the degrees of freedom in the model, and the R-squared.

2)List the p-values of each of the coefficient estimates.

3)Which coefficient estimates are statistically significant at the 5% level?

4)Given that the sample mean of age = 60.48, compute the average partial effect of age on WTP.

Please help with as many or all if possible!

. reg WTP Age Age2 black white HasInternet HasComputer Empl_FT Empl PT Retired, noc Source df MS Number of obs14,110 103.72 0.0000 .0621 Adj R-squared .0615 95.392 F(9, 14101) Model 8493868.11 128312798 9 943763.123 Prob F Residual 14,101 9099.55307 R-squared Total 136806666 14,110 9695.72403 Root MSE WTP Age black Coef Std. Err. (95% Conf. Interval] 1.337849 1.739862 Age2.9670305 875955112.73 0.000-1.115913 8181484 2.115165 -17.6219 -9.405956 1674062 14.7023 Empl_FT5.034129 2.372426-2.12 .034 9.684397 .3838605 Empl_PT 2.641381 3.2954970.80 .423 -3.8182289.10099 Retired| -9.238819 2.560848-3.61 0.000-14.25842-4.219218 1.538856 1025474 15.01 0.000 -3.891394 3.064364-1. -13.51393 2.095763 -,1434257 0.204 9.897952 -6.45 0.000 ?? s Internet HasComputer | 1585770.90 0.3664542576 8.1083 11.4053 1.682029 6.78 0.000

Explanation / Answer

Answer

1)  Sum of Squared Residuals = 128312798

Number of Observations in the sample = 14110

degrees of freedom in the model = 9

R Squared = 0.0621

2)

P value for coefficient of :

Age = 0.000, Age2 = 0.000, Black =0.204 , White = 0.000, hasinternet = 0.366 ,hascomputer = 0.000, Empl_FT = 0.034 , Empl_PT = 0.423 and Retired = 0.000.

3) Coefficients are significant at 5% level if p valuse is lesser than 0.05 for that coefficient.

Hence coefficient of Age, Age2, White, hascomputer, Empl_FT and Retired are statistically significant at 5%.

4) Increase in age by 1 year leads to increase in willingness to pay by 1.5388 units as coefficient of Age is 1.5388.

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