Consider the following summary statistics of the variables x, y and z var(x) = 2.4, var(y)=3.2, var(z) =1.1 cov(x,y) = 3.1, cov(x,z) = 4.2, cov(y,z) = 8 What is the instrumental variable (IV) estimator of the effect of x on y when you use the variable z as an instrumental variable?
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Consider the following summary statistics of the variables x, y and z
var(x) = 2.4, var(y)=3.2, var(z) =1.1
cov(x,y) = 3.1, cov(x,z) = 4.2, cov(y,z) = 8
What is the instrumental variable (IV) estimator of the effect of x on y when you use the variable z as an instrumental variable?
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- here is a negative relationship between two variables if: they move in opposite directions. they move in the same direction. one variable changes and the other does not. neither variable moves.A statistics instructor asks each student in his classes to report how much the student spent on textbooks for the semester. The figures reported by students are shown below. 725 735 555 420 385 480 505 270 405 285 585 450 515 560 500 395 545 595 365 455 505 345 555 485 560 475 520 455 355 590 550 495 505 505 495 465 370 355 480 385 515 605 480 410 485 560 475 350 465 435 455 380 320 535 565 520 510 495 485 650 490 295 555 540 565 490 570 380 610 600 390 375 390 335 525 445 540 490 485 555 440 560 405 590 520 470 560 510 340 385 585 635 415 455 590 385 505 510 545 405 470 560 495 515 495 595 565 615 470 680 465 470 310 470 505 465 375 360 650 460 560 500 375 500 370 415 490 440 470 525 535 640 385 475 425 595 505 365 485 495 390 380 585 690 Treat the data above as POPULATION data. 1 The mean expenditure on textbooks by all students is: a $485.38 b $495.29 c $505.40 d $515.71Southwest Airlines is able to keep fares low, in part because of relatively low maintenance costs on its airplanes. One of the main reasons for the low maintenance costs is that Southwest flies only one type of aircraft, the Boeing 737. However, Southwest flies three different versions of the 737. Suppose Southwest decides to conduct a study to determine whether there is a significant difference in the average annual maintenance costs for the three types of 737s used. a. State an independent variable for such a study. b. What are some of the levels or classifications that might be studied under this variable? c. Give a dependent variable for this study.
- The variable shown on the vertical axis is _________ . The units for the variable on the horizontal axis are __________ . There are two ways to view the information presented on the graph. First, the graph tells us the amount a person with a certain income is likely to spend on a car, and second, it tells us the probable income of a person who spent a certain amount on a car. For example, if an individual earned $40,000 last year and purchased a new car, you would expect that person to have paid about _________ for the car. Similarly, if someone just paid $25,000 for a car, you could use this graph to estimate that this person's income was probably around __________ .What type pf correlation does the graph show ?If a change in variable X causes a change in variable Y, variable Xis called the Select one: a. independent variable b. dependent variable c. explanatory variable d. B and C
- How can we say that Sample Average is the Efficient Linear Estimator of E(Y)?Briefly describe the concept of VIF (what is it, why do we use it) and explain how to calculate VIF in a model with 3 independent variables.In economics, what does the term ceteris paribus mean when analyzing the relationship between two variables? A. All other things being equal or held constant B. The direct relationship between two variables C. The inverse relationship between two variables D. The absence of any relationship between two variables
- Given the following data table: X Y 21 68 72 55 38 59 57 57 45 61 What is the correlation between X and Y? Include 3 decimal places in your answer.Indicate whether each of the following relationships is usually a direct relationship or an inverse relationship. a. A sports team’s winning percentage and attendance at its home games. b. Higher temperatures and sweater sales. c. A person’s income and how often he or she shops at discount stores. d. Higher gasoline prices and miles driven in automobiles.You are given the following dataset from a sample of the population. Superhero Number of Villains Captured Number of Losses Average Hours of Sleep Spiderham 30 9 12 Alligator Loki 50 1 23 Iron Man 20 8 6 Phil Coulson 18 2 8 Yelena Belova 25 5 2 Round all answers to 2 decimal places. IE: 3.567 = 3.57 D. Calculate the correlation between the number of villains captured and average hours of sleep . If answer is negative, include negative sign. E. Calculate the sample covariance between the average number of losses and average hours of sleep . If answer is negative, include negative sign.
