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According to the regression results, it seems that there is a positive bias. Is this statement true or false? O True O False

According to the regression results, it seems that there is a positive bias. Is this statement true or false? O True O False

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 15PPS
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cons | 4.621375 2.656473 1.74 0.086 -.6662029 9.908953 According to the regression results, it seems that there is a positive bias. Is this statement true or false? O True O False
Transcribed Image Text:cons | 4.621375 2.656473 1.74 0.086 -.6662029 9.908953 According to the regression results, it seems that there is a positive bias. Is this statement true or false? O True O False
Question Completion Status A researcher is using data for 82 countries to find a possible omitted variable bias when running a regression of GDP per capita only on RAD expenditure, omiting a variable trade. To be unit free, the rescarcher took logs of all the three variables: (edpcap (-log(GDP per capita)) asa dependent variable, and ird (-log(RAD expenditure)) and Itrode (-log(trade)) as explanatory variables. Ater running regressions, the researcher got the following two estimation results . reg 1gdpcap Ird Source 1 SS df MS Number of obs 82 33.97 F(1, 80) Model I Residual I 48.4595045 114.122593 1 48.4595045 80 1.42653242 Prob > F 0.0000 R-aquared Adj R-aquared Root MSE 0.2981 0.2893 Total 162.582098 81 2.00718639 1.1944 1gdpcap I Coef. Std. Err. (95 Conf. Interval) ird I 2469054 .0423625 5.83 0.000 .1626013 .3312095 4.244626 cons I 2.119963 1.067636 1,99 0.050 0047007 reg 1gdpcap Ird itrade Source I df Number of obs 82 F(2, 79) 24.983367 79 1.42551094 Prob>F R-aquared Adj R-aquared 17.53 0.0000 0,3073 0.2898 Model 49.966734 Residual 112.615364 Total 162.582098 81 2,00710639 Root MSE 1939 (95 Conf. Intervall Coef. Std. Eer. t Igdpcap i 0,000 0.307 0.086 6687916 1884175 .1036486 3862301 -.2013568 2.72 -1.03 1419586 1rd 1958222 5911312 Itrade ,6662029 9.908953 4.621375 2.656473 1.74 cons 1 Seve A s la itutme 4 All A ers to me all unoers
Transcribed Image Text:Question Completion Status A researcher is using data for 82 countries to find a possible omitted variable bias when running a regression of GDP per capita only on RAD expenditure, omiting a variable trade. To be unit free, the rescarcher took logs of all the three variables: (edpcap (-log(GDP per capita)) asa dependent variable, and ird (-log(RAD expenditure)) and Itrode (-log(trade)) as explanatory variables. Ater running regressions, the researcher got the following two estimation results . reg 1gdpcap Ird Source 1 SS df MS Number of obs 82 33.97 F(1, 80) Model I Residual I 48.4595045 114.122593 1 48.4595045 80 1.42653242 Prob > F 0.0000 R-aquared Adj R-aquared Root MSE 0.2981 0.2893 Total 162.582098 81 2.00718639 1.1944 1gdpcap I Coef. Std. Err. (95 Conf. Interval) ird I 2469054 .0423625 5.83 0.000 .1626013 .3312095 4.244626 cons I 2.119963 1.067636 1,99 0.050 0047007 reg 1gdpcap Ird itrade Source I df Number of obs 82 F(2, 79) 24.983367 79 1.42551094 Prob>F R-aquared Adj R-aquared 17.53 0.0000 0,3073 0.2898 Model 49.966734 Residual 112.615364 Total 162.582098 81 2,00710639 Root MSE 1939 (95 Conf. Intervall Coef. Std. Eer. t Igdpcap i 0,000 0.307 0.086 6687916 1884175 .1036486 3862301 -.2013568 2.72 -1.03 1419586 1rd 1958222 5911312 Itrade ,6662029 9.908953 4.621375 2.656473 1.74 cons 1 Seve A s la itutme 4 All A ers to me all unoers
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