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Exlplain Linear Conditionally Unbiased Estimators and the Gauss–Markov Theorem with its limitations?
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- Suppose that the following binary dependent models. The model is based on the driving test of the 400 randomly selected driver’s license applicants. Y=1 if passed the test, or 0 otherwise, and X1 is years of experiences, X2 is the years of educations. Logit: P(Y=1/X) = F(0.563+ 0.040X1+ 0.057X2) What are the probabilities of passing the test for a person with 10 years of experiences and 10 years of educations in each model?Explain Gauss–Markov Theorem with proof ? How estimators satisfy the equations?Explain Standard errors for TSLS (two stage least squares)?
- Determine the share (proportion) of person trips by each of two modes (Private auto and mass transit) using the multinomial logit model and given and following informationPlease no written by hand The assumption of normally distributed errors means that... A. errors can be ignored when doing regression modelling. B. the OLS estimators can also be assumed to be normally distributed since they are a linear functions of the errors. C. the OLS estimators can also be assumed to be normally distributed since they are BLUE. D. the OLS estimators can also be assumed to be normally distributed since they are minimum variance. E. the regression model will not be subject to specification error.What is sampling? Explain the differences between probability and nonprobability samples and identify the various typesof each
- Using Y as the dependent variable and X1, X2, X3, X4 and X5 as the explanatoryvariables, formulate an econometric model for data that is (i) time series data (ii)cross-sectional data and (iii) panel data – (Hint: please specify the specific model herenot its general form).The model initial setup is• The number of vacancies posted in the economy during a particular month is v = 100.• There were initially u = 225 unemployed workers at the beginning of the month.• Suppose that the average wage is 0.6 relative to their productivity. Unemployed workersreceive benefits that are half the wage, i.e., b = 0.3 relative to productivity.• Suppose that the number of matches between firms and workers are given by thefollowing matching functionsM = Au^0.5v^0.5• Suppose that 45 workers were able to find a job by the end of the month.Answer the following questions.a) What is the monthly job finding rate?b) What is the probability that an average vacancy is filled in a month?c) What is the job creation cost, k?d) What is the value of A?e) Explain how introducing a searching cost to this model would affect the queue length,the number of vacancy and unemployment rate, and wage.Which of the following statements is true? a) None of the other possible answers are true. b) Under the Classical Linear Model assumptions, the OLS estimator has the highest variance among unbiased estimators. c) Taking the natural log of a non-normal distribution often yields a distribution that is closer to normal. d) The Central Limit Theorem (CLT) assumes that the dependent variable is unaffected by unobserved factors. e) The mean of a non-normal distribution is 0 and the variance is σ2.
