Lab11 Crim320

Economics Help: Please see attached. Which one is correct?

Write both a null and research hypothesis for the following variables: study time and academic success exam scores and hours spent sleeping parental support and disciplinary conduct problems

Scenario 2: Unknown Scenario: Imagine you are an economist working for the Government of Econville. You are tasked with developing a model to predict the GDP of the country based on various factors such as interest rates, inflation, unemployment rate, and population growth. You collect quarterly data for the past 20 years and start building your model. After running your initial regression, you notice some peculiar patterns in the residuals: (1) residuals do not have identical variances across different levels of the independent variables; (2) two or more independent variables in a regression model are highly correlated with each other; (3) the correlation of a variable with its own past values. You suspect that your model might be suffering from 3 potential issues in the regression analysis that can affect reliability and validity.  Please answer the following questions based on scenario 2.(I)What name would you give to this potential issue that pertains to residuals that do not have…

Imagine you are an economist working for the Government of Econville. You are tasked with developing a model to predict the GDP of the country based on various factors such as interest rates, inflation, unemployment rate, and population growth. You collect quarterly data for the past 20 years and start building your model. After running your initial regression, you notice some peculiar patterns in the residuals: (1) residuals do not have identical variances across different levels of the independent variables; (2) two or more independent variables in a regression model are highly correlated with each other; (3) the correlation of a variable with its own past values. You suspect that your model might be suffering from 3 potential issues in the regression analysis that can affect reliability and validity. what are the implications of Heteroscedasticity if this potential issue in your model?

Imagine you are an economist working for the Government of Econville. You are tasked with developing a model to predict the GDP of the country based on various factors such as interest rates, inflation, unemployment rate, and population growth. You collect quarterly data for the past 20 years and start building your model. After running your initial regression, you notice some peculiar patterns in the residuals: (1) residuals do not have identical variances across different levels of the independent variables; (2) two or more independent variables in a regression model are highly correlated with each other; (3) the correlation of a variable with its own past values. You suspect that your model might be suffering from 3 potential issues in the regression analysis that can affect reliability and validity.  Based on Addressing Heteroscedasticity list one test you would employ to test this potential issue?

Imagine you are an economist working for the Government of Econville. You are tasked with developing a model to predict the GDP of the country based on various factors such as interest rates, inflation, unemployment rate, and population growth. You collect quarterly data for the past 20 years and start building your model. After running your initial regression, you notice some peculiar patterns in the residuals: (1) residuals do not have identical variances across different levels of the independent variables; (2) two or more independent variables in a regression model are highly correlated with each other; (3) the correlation of a variable with its own past values. You suspect that your model might be suffering from 3 potential issues in the regression analysis that can affect reliability and validity. List 2 factors in your model that might be causing the Heteroscedasticity and give a reason

True or False? WLS is preferred to OLS when an important variable has been omitted from the model.

If OLS is used in the presence of autocorrelation, which of the following will be likely consequences? i) Coefficient estimates may be misleading ii) Hypothesis tests could reach the wrong conclusions iii) Forecasts made from the model could be biased iv) Standard errors may inappropriate Answers: a- (ii) and (iv) b- (i) and (iii) c- (i), (ii), (iii) and (iv) d- (i), (ii) and (iii)

Let wage denote hourly wages, educ denote years of education, and define the dummy variable: if educ > 12 D = if educ < 12 i.e. we can think of D as a dummy variable indicating graduation from high school. Suppose we want to test the null hypothesis that the marginal return to education for every year after high school is the same as the marginal return to education for each year before high school (against the alternative that they are different). Which model and test would accomplish this goal? O a. Estimate wage = B1 + B2 educ + ß3 D + e and test Ho : ß3 = B2 against H1 : ß3 # B2. O b. Estimate wage = ß1 + B2educ + ß3 D + e and test Ho : ß3 = 0 against H1 : ß3 # 0. Estimate wage = B1 + B2educ + B3(educ + D) + e and test Ho : ß3 = 62 against H1 : B3 # B2. O d. Estimate wage = B1 + B2educ + B3(D × (educ – 11)) + e and test Ho : ß3 = B2 against H : B3 # B2. c. O e. Estimate wage = Bi + B2educ + ß3(D × (educ – 11)) + e and test Ho : ß3 = 0 against H1 : ß3 + 0.

In the hedonic model, what is the alternative hypothesis?   The price impact is 0   There is a positive price impact   There is a negative price impact   The price impact is not equal to 0

QUESTİON 4: Briefly explain Harrod-Domar model. What are the shortcomings of the model? Discuss.

Suppose that an economist has been able to gather data on the relationship between demand and price for a particular product. After analyzing scatterplots and using economic theory, the economist decides to estimate an equation of the form Q=  aPb, where Q is quantity demanded and P is price. An appropriate regression analysis is then performed, and the estimated parameters turn out to be a = 1000 and b = - 1.3. Now consider two scenarios: (1) the price increases from $10 to $12.50; (2) the price increases from $20 to $25. a. Do you predict the percentage decrease in demand to be the same in scenario 1 as in scenario 2? Why or why not? b. What is the predicted percentage decrease in demand in scenario 1? What about scenario 2? Be as exact as possible.  

As you know, the consumption of opioids in the US has been matter of great medical concern. A study has suggested that the consumption of drugs starting 3 years ago, can be modeled by the equation: 100001? C=- 1' +7 +280 Where C= consumption in thousands of drug pills t = time in years, starting 3years ago Discuss the proposed mathematical model by addressing the following points shown by the model: a) Determine whether the consumption of drugs is, at present, still increasing or has started to decrease. b) Based on your finding of aspect a), when "did" or "will" the consumption of drugs peak? C) Also, based on your finding of aspect a), what would you report be in reference to the rate of consumption at present? Use a graph utility to plot the function and illustrate the discussion.

You model the relationship between citizens' consumption and their monthly income. Based on your experience, you know that people with lower income usually spend 60% of their income on consumption. For people with higher income, some may spend only 40% on consumption, while others spend 70% on consumption. What is the potential problem when you use a linear regression model? E[u\x] #0 Heteroskedasticity Perfect colinearity No variability in x None of above

Observation: Students on a university campus notice that the freshly squeezed mango juice ferments faster than the freshly made lime juice even though they are made by the same vendor, using the same method of juice extraction, and kept at the same temperature. 1.Write a simple hypothesis, null hypothesis and alternative hypothesis. 2. Suggest a simple step by step method that can be used to test your hypothesis

Is there any empirical evidence to support the prediction of gravity model? Explain

First present the equations used in the empirical test of the Heckscher-Ohlin- Vanek (HOV) model explaining all variables, vectors and matrices used. Then present both hypotheses of the HOV model and explain how they relate to the original Heckscher-Ohlin-Samuelson hypothesis.

Being able to read regression results can help the manager use the information to make right decisions particularly in developing a marketing strategy. Assume that you are interested in finding whether the advertisement has a significant positive effect on sales. Which of the following is correct? A. lower standard errors of the estimates are better than higher standard errors B. as a rule of thumb, you are correct 95 % of the time in concluding that there is a positive and significant relationship between the advertising expenditures and sales if the coefficient attached to advertising expenditure is positive and the “t” value is at least 2 C. there is a positive significant relationship between advertising expenditure and sales if both the lower bound and the upper bound of the confidence interval are positive. D. the R2 shows the proportion of the variation in the sales as explained by the model which consists of the advertising expenditure plus some other determinants of sales…

Interpret this graph according to the theory of hecksher-ohlin model.

Consider the following model of the factors that influence a person's annual wage: Y = β0 + β1X1 + β2X2 + β3X1X2 + β4X3 + u where Y = annual wage, in dollars X1= years of formal education X2 = age, in years X3 = variable equal to 1 if male, 0 otherwise U = error term Which of the following is the interpretation of β1 alone? The effect of X1 on Y when X2 = 0 The effect of X1 on Y when X2 is at its median value. The effect of X1 on Y, holding all else equal. The effect of X1 on Y when X2 is at its mean value.

Consider the model: yt = α0 + b0st + b1st-1 + b2st-2 + b3st-3 + ut. What is the effect of a permanent change in s on y?

Give step by step answer with final solution Don't use AI I will downvote

Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $165,000. Variable processing costs are estimated to be $5 per book. The publisher plans to sell single-user access to the book for $44. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand price of the e-book. (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) = (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given single-user access price taking into account the above demand function. What is the profit estimated by your model for the given costs and single user access price (in dollars). $ 3736 X (c) Use a data table that varies price from $50 to $400…

Explain the assumptions of the Harberger model

Consider an equation to explain salaries of CEOS in terms of annual firm sales, return on equity (roe, in percentage form), and return on the firm's stock (ros, in percentage form): log(salary) = Bo + Bilog(sales) + Bzroe + B;ros + u. (i) In terms of the model parameters, state the null hypothesis that, after controlling for sales and roe, ros has no effect on CEO salary. State the alternative that better stock market performance increases a CEO's salary. (ii) Using the data in CEOSAL1, the following equation was obtained by OLS: log (salary) = 4.32 + .280 log(sales) + .0174 roe + .00024 ros (.32) (.035) (.0041) (.00054) n = 209, R2 = .283. By what percentage is salary predicted to increase if ros increases by 50 points? Does ros have a practically large effect on salary? (iii) Test the null hypothesis that ros has no effect on salary against the alternative that ros has a positive effect. Cary out the test at the 10% significance level. (iv) Would you include ros in a final model…