Questions from Econometrics

Q: Read the box “The Demand for Economics Journals” in Section

Read the box “The Demand for Economics Journals” in Section 8.3. Discuss the internal and external validity of the estimated effect of price per citation on subscri...

Q: Consider the one-variable regression model Yi = 0 +

Consider the one-variable regression model Yi = 0 + 1Xi + ui, and suppose it satisfies the least squares assumptions in Key Concept 4.3. The regressor Xi is missing, but data on a related variable,...

Q: Assume that the regression model Yi = 0 + 1Xi

Assume that the regression model Yi = 0 + 1Xi + ui satisfies the least squares assumptions. You and a friend collect a random sample of 300 observations on Y and X. a. Your friend reports that he in...

Q: Compute the following probabilities: a. If Y is distributed

Compute the following probabilities: a. If Y is distributed t12, find Pr (Y

Q: Consider the one-variable regression model Yi = 0 +

Consider the one-variable regression model Yi = 0 + 1Xi + ui, and suppose it satisfies the least squares assumptions. Suppose Yi is measured with error, so the data are Y∼i = Yi + wi, where wi is th...

Q: Labor economists studying the determinants of women’s earnings discovered a puzzling empirical

Labor economists studying the determinants of women’s earnings discovered a puzzling empirical result. Using randomly selected employed women, they regressed earnings on the women’s number of children...

Q: Using the regressions shown in columns (2) of Table 9

Using the regressions shown in columns (2) of Table 9.3, and column (2) of Table 9.2, construct a table like Table 9.3 and compare the estimated effects of a 10 percentage point increase in the studen...

Q: The demand for a commodity is given by Q = 0

The demand for a commodity is given by Q = 0 + 1P + u, where Q denotes quantity, P denotes price, and u denotes factors other than price that determine demand. Supply for the commodity is given by Q...

Q: Suppose that n = 50 i.i.d. observations

Suppose that n = 50 i.i.d. observations for (Yi, Xi) yield the following regression results: Y^ = 49.2 + 73.9X, SER = 13.4, R2 = 0.78. Another researcher is interested in the same regression, but he m...

Q: Are the following statements true or false? Explain your answer.

Are the following statements true or false? Explain your answer. a. “An ordinary least squares regression of Y onto X will not be internally valid if Y is correlated with the error term.” b. “If the e...