Homework Answers
If there is correlation between self-control and perseverance
and if self control and perseverance are in the error term u, then
OLS will provide a biased estimate of 
due to omitted variables .Therefore, OLS estimators are biased
when the error u captures perseverance and self control and you
believe that people who are perseverant and have more self control
tend to have higher income. Hence,option(B) is
correct.
Add Answer to:
1. For a simple linear regression BMI = a + BIncome+u. Suppose you have a random...
1. In the simple regression model y = + β1x + u, suppose that E (u)...
1. In the simple regression model y = + β1x + u, suppose that E (u) 0. Letting oo-E(u), show that the model can always be rewrit ten with the same slope, but a new intercept and error, where the new error has a zero expected value 2. The data set BWGHT contains data on births to women in the United States. Two variables of interest are the dependent variable, nfan birth weight in ounces (bught), and an explanatory variable,...
7. In a simple regression model, suppose all of the assumptions of the classical linear regression...
7. In a simple regression model, suppose all of the assumptions of the classical linear regression morel apply, except that rather than assume E (ui | Xi) = 0, you assume that E (Ui / X;) = ali and E (xi) = 0 where a > 0 is a constant. (a) What is the conditional expectation of the OLS slope coefficient, i.e. E (B1 | 21, ..., XN)? (b) In this case, is ß1 an unbiased estimator of B1 or...
1. Consider the following simple regression model: y = β0 + β1x1 + u (1) and...
1. Consider the following simple regression model: y = β0 + β1x1 + u (1) and the following multiple regression model: y = β0 + β1x1 + β2x2 + u (2), where x1 is the variable of primary interest to explain y. Which of the following statements is correct? a. When drawing ceteris paribus conclusions about how x1 affects y, with model (1), we must assume that x2, and all other factors contained in u, are uncorrelated with x1. b....
10.2 For the sample in problem 10.1, consider another estimator of u (call it ê) that...
10.2 For the sample in problem 10.1, consider another estimator of u (call it ê) that is defined as follows: ( 10.1 Suppose that we have a simple random sample of size 3 from a population with mean w. Our estimator of u is ê, defined as follows: When sampling from a nonnormal population, there may be unbiased es- timators of u that are more efficient than X. These estimators, however, would be nonlinear functions of the Xi's; that is,...
1. Suppose that X Unif(0, 30) and we draw a random sample X1,..., Xn Find the...
1. Suppose that X Unif(0, 30) and we draw a random sample X1,..., Xn Find the MME and compute its relative efficiency to 6, = 2X1-3X2. 2. In class, I showed the below picture. Here, I have changed the vertical axis from variance to SD. In this new picture, how can we visualize the MSE? How does this way of seeing the MSE help us decide which of two (possibly biased) estimators is more efficient? SD 04 Bias (B) 0...
2.4 We have defined the simple linear regression model to be y =B1 + B2x+e. Suppose...
2.4 We have defined the simple linear regression model to be y =B1 + B2x+e. Suppose however that we knew, for a fact, that ßı = 0. (a) What does the linear regression model look like, algebraically, if ßı = 0? (b) What does the linear regression model look like, graphically, if ßı = 0? (c) If Bi=0 the least squares "sum of squares" function becomes S(R2) = Gyi - B2x;)?. Using the data, x 1 2 3 4 5...
Exercise 4.11 Consider the regression model Y Po PX+u Suppose that you know Bo 1. Derive...
Exercise 4.11 Consider the regression model Y Po PX+u Suppose that you know Bo 1. Derive the formula for the least squares estimator of p The least squares objective function is OA. n (v2-bo-bx?) i-1 Ов. O B. n (M-bo-bX) /# 1 n Click to select your answer and then click Check Answer. Exercise 4.11 OA n Σ (--B,χ?) O B. E (Y-bo-b,X)2 j= 1 n Σ (Υ-Βo-bΧ) 3. j= 1 D. n Σ (Υ-0-b,) i- 1 Click to select...
Which of the following statements is true? (a) If the calculated value of F statistic is...
Which of the following statements is true? (a) If the calculated value of F statistic is higher than the critical value, we reject the alternative hypothesis in favor of the null hypothesis. (b) The F statistic is always nonnegative as SSR, is never smaller than SSRur. (C) Degrees of freedom of a restricted model is always less than the de- grees of freedom of an unre- stricted model. (d) The F statistic is more flexible than the t statistic to...
You observe sarriples X1....,x. Ber(@) where 0 € (0,1) is an unknown parameter. Suppose that is...
You observe sarriples X1....,x. Ber(@) where 0 € (0,1) is an unknown parameter. Suppose that is much larger than 1 so we have access to many samples from the specified distribution. Consider three candidate estimators for 0. . X.-1x . 0.5 In the next three questions, you will consider potential strengths and weaknesses of these estimators. In this particular section (just for now), the phrase "efficiently computable" refers to the existence of an explicit formula. More precisely, here we say...
1. In the simple regression model y = + β1x + u, suppose that E (u) 0. Letting oo-E(u), show that the model can always be rewrit ten with the same slope, but a new intercept and error, where the new error has a zero expected value 2. The data set BWGHT contains data on births to women in the United States. Two variables of interest are the dependent variable, nfan birth weight in ounces (bught), and an explanatory variable,...
7. In a simple regression model, suppose all of the assumptions of the classical linear regression morel apply, except that rather than assume E (ui | Xi) = 0, you assume that E (Ui / X;) = ali and E (xi) = 0 where a > 0 is a constant. (a) What is the conditional expectation of the OLS slope coefficient, i.e. E (B1 | 21, ..., XN)? (b) In this case, is ß1 an unbiased estimator of B1 or...
10.2 For the sample in problem 10.1, consider another estimator of u (call it ê) that is defined as follows: ( 10.1 Suppose that we have a simple random sample of size 3 from a population with mean w. Our estimator of u is ê, defined as follows: When sampling from a nonnormal population, there may be unbiased es- timators of u that are more efficient than X. These estimators, however, would be nonlinear functions of the Xi's; that is,...
1. Suppose that X Unif(0, 30) and we draw a random sample X1,..., Xn Find the MME and compute its relative efficiency to 6, = 2X1-3X2. 2. In class, I showed the below picture. Here, I have changed the vertical axis from variance to SD. In this new picture, how can we visualize the MSE? How does this way of seeing the MSE help us decide which of two (possibly biased) estimators is more efficient? SD 04 Bias (B) 0...
2.4 We have defined the simple linear regression model to be y =B1 + B2x+e. Suppose however that we knew, for a fact, that ßı = 0. (a) What does the linear regression model look like, algebraically, if ßı = 0? (b) What does the linear regression model look like, graphically, if ßı = 0? (c) If Bi=0 the least squares "sum of squares" function becomes S(R2) = Gyi - B2x;)?. Using the data, x 1 2 3 4 5...
Exercise 4.11 Consider the regression model Y Po PX+u Suppose that you know Bo 1. Derive the formula for the least squares estimator of p The least squares objective function is OA. n (v2-bo-bx?) i-1 Ов. O B. n (M-bo-bX) /# 1 n Click to select your answer and then click Check Answer. Exercise 4.11 OA n Σ (--B,χ?) O B. E (Y-bo-b,X)2 j= 1 n Σ (Υ-Βo-bΧ) 3. j= 1 D. n Σ (Υ-0-b,) i- 1 Click to select...
Which of the following statements is true? (a) If the calculated value of F statistic is higher than the critical value, we reject the alternative hypothesis in favor of the null hypothesis. (b) The F statistic is always nonnegative as SSR, is never smaller than SSRur. (C) Degrees of freedom of a restricted model is always less than the de- grees of freedom of an unre- stricted model. (d) The F statistic is more flexible than the t statistic to...
You observe sarriples X1....,x. Ber(@) where 0 € (0,1) is an unknown parameter. Suppose that is much larger than 1 so we have access to many samples from the specified distribution. Consider three candidate estimators for 0. . X.-1x . 0.5 In the next three questions, you will consider potential strengths and weaknesses of these estimators. In this particular section (just for now), the phrase "efficiently computable" refers to the existence of an explicit formula. More precisely, here we say...
Most questions answered within 3 hours.
-
Please Help ASAP.
1Consider the below code which iterates over a linked
list of n nodes...
asked 12 minutes ago -
Determine the air to fuel ratio of:
Canadian natural gas, with 93.9% methane, 4.2% ethane, 0.3%...
asked 13 minutes ago -
A manufacturer of power tools claims that the average amount of
time required to assemble their...
asked 15 minutes ago -
"electron-withdrawing substituents on carbon encourage back
donation", then on the next page he says that "greater...
asked 26 minutes ago -
On December 31, 2016, the shareholders’ equity section of the
balance sheet of R & L...
asked 34 minutes ago -
16.7
At t=0s a small "upward" (positive y) pulse centered at x = 5.0
m is...
asked 48 minutes ago -
Twitter Users and News: A poll conducted in 2013 found that 52%
of U.S. adult Twitter...
asked 1 hour ago -
How
would I know whether a given amino acid has an ionizable group or
not? please...
asked 1 hour ago -
True or false?
True False The function of the enzyme acyl CoA
synthetase is the ATP-dependent coupling...
asked 1 hour ago -
Nadia Corporation adjusts its debt so that its interest coverage
(EBIT/Interest) remains constant at 3. Nadia’s...
asked 1 hour ago -
In a clinical trial, 20 out of 600 patients taking a
prescription drug complained of flulike...
asked 1 hour ago -
7. How many types of nuclear processes can produce energy? 8.
How many types of radioactive...
asked 1 hour ago