In a multiple OLS regression. Does correlation between explanitory variables violate assumtion number 4 multicolliniearity? Or is it just for perfect colinearity?
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In a multiple OLS regression. Does correlation between explanitory variables violate assumtion number 4 multicolliniearity? Or is it just for perfect colinearity?
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- In regards to multiple OLS regressions, what does it mean to have a loss of residuals or multicolinearity? What are the consequences?In multiple regressions, the correlation coefficient of each independent variable can be measured in addition to the multiple correlation coefficient. How do the values of individual correlation coefficients compare to the value of the multiple correlation coefficient?Define coefficients of the Linear Regression Model?
- Consider the IV regression model Yi = β0 + β1Xi + β2Wi + ui, where Xi is correlated with ui and Zi is an instrument. Suppose that the first three assumptions in Key Concept (The IV Regression Assumptions) are satisfied. Which IV assumption is not satisfied whena) Zi is independent of (Yi, Xi, Wi)?b) Zi=Wi?c) Wi is1 for all i?d) Zi=Xi?A company wants to use regression analysis to forecast the demand for the next quarter.In such a regression model, demand would be the independent variable. True or false?a. Trueb. FalseExplain what is meant by an error term. What assumptions do we makeabout an error term when estimating an ordinary least squares regression?
- In the December, 1969, American Economic Review (pp. 886-896), Nathanial Leff reports thefollowing least squares regression results for a cross section study of the effect of age composition onsavings in 74 countries in 1964:log S/Y = 7.3439 + 0.1596 log Y/N + 0.0254 log G - 1.3520 log D1 - 0.3990 log D2 (R2= 0.57)log S/N = 8.7851 + 1.1486 log Y/N + 0.0265 log G - 1.3438 log D1 - 0.3966 log D2 (R2= 0.96)where S/Y = domestic savings ratio, S/N = per capita savings, Y/N = per capita income, D1 = percentage ofthe population under 15, D2 = percentage of the population over 64, and G = growth rate of per capitaincome. Are these results correct? Explain..In multiple regression model: what is it means for a variable to be significant? Explain the meaning of the significant variable.Which of the following statements concerning the least squares regression of Y on X depicted in the graph below is true?
- What is a linear regression model? What is measured by the coefficients ofa linear regression model? What is the ordinary least squares estimator?q9- Which property of linear regression is related with the size effects of individual units in a cross-section data? Select one: a. Heteroskedasticity b. Endogeneity c. Autocorrelation d. Non-normality Clear my choiceConsider the simple linear regression model given by E(y) = 1.5 + 0.23*x where y is measured in litres and x is measured in dollars. What must be the value of the slope coefficient if x is measured in thousands of dollars while the unit of measurement of y is unchanged (i.e., x is divided by 1000)? Answer: