if education is heavily affected by IQ and IQ is closely correlated with both wage and education level, how would a regression of wage on education be biased? What regression violation is this? (
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if education is heavily affected by IQ and IQ is closely correlated with both wage and education level, how would a regression of wage on education be biased? What regression violation is this? (For econometrics)
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- What are the various functional forms of Regression Model?Who Invented Instrumental Variables Regression?Each cell represents a regression with a different outcome variable from Krueger’s (1993) study of workers who use computers. The left hand side variable is log wages. Answer based on column 2 of the above regression table. 1. Write a sentence that explains the relationship the regression is describing in row 2. 2. What is the number in parenthesis? What is it trying to communicate? 3. Write a causal statement that captures what the authors are trying to argue in row 2.
- Write is details about the regression analysis?Regression analysis and the correlation coefficient can both be used to analyze the relationship between two economic variables. What are the advantages of using regression analysis instead of looking at the correlation coefficient?Economics you learned four steps that should be used to evaluate a regression model. What is the first step and why is it so important?
- Investigate what factors determine the number of times a person logs into Facebook per week. It is argued that these four factors are important: number of friends, age in years, whether the person is employed, and whether the student has a Twitter account. That is: FACEBOOK LOGIN=f(FRIENDS,AGE,EMPLOYED,TWITTER) Name two irrelevant explanatory variables that should not be included in the regression. Note that these two variables currently should NOT feature in the regression.Run the Multiple Linear Regression using Fatalities as the dependentvariable and Licensed drivers, registered vehicles, and GDP per capita as independentvariables. Submit Excel FileCalculate the following:a- Interpret the R-squareb-Find the equation of the fitted linec- Which variable has the strongest relationship with number of fatalities?d- Identify which variables are significant/non-significant using alpha = 0.05? Fatalities Licensed Drivers Registered Vehicles GDP per Capita (measured) 953 3999057 5300199 40598 80 536033 803684 71996 1010 5284970 5806313 43464 516 2145334 2817145 38919 3563 27039400 31022328 68970 632 4244713 5356018 59885 294 2605612 2879802 68555 111 786504 1008468 64895 31 527731 351933 176498 3133 15368695 17496002 43423 1504 7168733 8512550 50288 117 948417 1267385 58185 231 1252535 1879670 40189 1031 8714788 10588910 60419 858 4589405 6190736 49209 318 2260271 3691892 54520 404 2149430 2684010 53094 724…Read the analyst's analysis (see below) of the relationship between the minimum wage and employment across states, study the table of regression results (See below), and answer the following questions: a. Interpret the coefficient on Minimum Wage in Column 1.