Q: Which of the following are consequences of heteroskedasticity? (i
Which of the following are consequences of heteroskedasticity? (i) The OLS estimators, β j, are inconsistent. (ii) The usual F statistic no longer has an F distribution. (iii) The OLS estimators are...
See AnswerQ: Consider a linear model to explain monthly beer consumption: /
Consider a linear model to explain monthly beer consumption: Write the transformed equation that has a homoskedastic error term.
See AnswerQ: True or False: WLS is preferred to OLS when an important
True or False: WLS is preferred to OLS when an important variable has been omitted from the model.
See AnswerQ: (i) Obtain the OLS estimates in equation (8.
(i) Obtain the OLS estimates in equation (8.35). (ii) Obtain the /used in the WLS estimation of equation (8.36) and reproduce equation (8.36). From this equation, obtain the unweighted residuals and f...
See AnswerQ: Using the data in GPA3, the following equation was estimated for
Using the data in GPA3, the following equation was estimated for the fall and second semester students: Here, trmgpa is term GPA, crsgpa is a weighted average of overall GPA in courses taken, cumgpa...
See AnswerQ: The variable smokes is a binary variable equal to one if a
The variable smokes is a binary variable equal to one if a person smokes, and zero otherwise. Using the data in SMOKE, we estimate a linear probability model for smokes: The variable white equals one...
See AnswerQ: There are different ways to combine features of the Breusch-Pagan
There are different ways to combine features of the Breusch-Pagan and White tests for heteroskedasticity. One possibility not covered in the text is to run the regression where the µ I...
See AnswerQ: Consider a model at the employee level, / where
Consider a model at the employee level, where the unobserved variable fi is a “firm effect†to each employee at a given firm i. The error term vi,e is specific to e...
See AnswerQ: The following equations were estimated using the data in ECONMATH. The
The following equations were estimated using the data in ECONMATH. The first equation is for men and the second is for women. The third and fourth equations combine men and women. (i) Compute the usu...
See AnswerQ: The estimated equation / The variable sleep is total minutes
The estimated equation The variable sleep is total minutes per week spent sleeping at night, totwrk is total weekly minutes spent working, educ and age are measured in years, and male is a gender dumm...
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