Questions from General Economics

Q: The variable rdintens is expenditures on research and development (R&

The variable rdintens is expenditures on research and development (R&D) as a percentage of sales. Sales are measured in millions of dollars. The variable profmarg is profits as a percentage of sales....

Q: Are rent rates influenced by the student population in a college town

Are rent rates influenced by the student population in a college town? Let rent be the average monthly rent paid on rental units in a college town in the United States. Let pop denote the total city p...

Q: (i) In the simple regression model price = B0

(i) In the simple regression model price = B0 + B1assess + u, the assessment is rational if B1 = 1 and B0 = 0. The estimated equation is price = - 14.47 + .976 assess (16.27) (.049)...

Q: (i) The population model estimated in Example 4.7

(i) The population model estimated in Example 4.7 can be written as Log(scrap) = β0 + β1hrsemp + β2log(sales) + β3log(employ) + u. Using the 43 observations available for 1987, the estimated equation...

Q: Consider the multiple regression model with three independent variables, under the

Consider the multiple regression model with three independent variables, under the classical linear model assumptions MLR.1 through MLR.6: y = β0 + β1x1 + β2x2 + β3x3 + µ. You would like to test the n...

Q: As the estimated equation is given below, sleep 5=

As the estimated equation is given below, sleep 5= 3,638.25 - .148 totwrk - 11.13 educ + 2.20 age (112.28) (.017) (5.88) (1.45) n = 706, R2 = .113, where we now report standard errors...

Q: Regression analysis can be used to test whether the market efficiently uses

Regression analysis can be used to test whether the market efficiently uses information in valuing stocks. For concreteness, let return be the total return from holding a firm’s stock over the four-ye...

Q: Apply the full White test for heteroskedasticity to equation (8.

Apply the full White test for heteroskedasticity to equation (8.18). Using the chisquare form of the statistic, obtain the p-value. What do you conclude?

Q: Use the data in MEAP00 to answer this question. (

Use the data in MEAP00 to answer this question. (i) Estimate the model by OLS and obtain the usual standard errors and the fully robust standard errors. How do they generally compare? (ii) Apply the s...

Q: Use the data in FERTIL2 to answer this question. (

Use the data in FERTIL2 to answer this question. (i) Estimate the model and report the usual and heteroskedasticity-robust standard errors. Are the robust standard errors always bigger than the nonro...