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- Explain the differences between Gaussian elimination and Gauss-Jordan elimination.Explain how you can determine the steady state matrix X of an absorbing Markov chain by inspection.A possible important environmental determinant of lung function in children is the amount of cigarette smoking in the home. Suppose this question is studied by selecting two groups: Group 1 consists of 23 nonsmoking children 5-9 years of age, both of whose parents smoke, who have a mean forced expiratory volume (FEV) of 2.1 L and a standard deviation of 0.7 L; group 2 consists of 20 nonsmoking children of comparable age, neither of whose parents smoke, who have a mean FEV of 2.3 L and a standard deviation of 0.4 L.*8.31 What are the appropriate null and alternative hypotheses to compare the means of the two groups? *8.32 What is the appropriate test procedure for the hypotheses in Problem 8.31? *8.33 Carry out the test in Problem 8.32 using the criticalvalue method. *8.34 Provide a 95% CI for the true mean difference in FEV between 5- to 9-year-old children whose parents smoke and comparable children whose parents do not smoke. *8.35 Assuming this is regarded as a pilot study, how many…
- In the context of a controlled experiment, consider the simple linear regression formulation Yi = β0 + β1Xi + Ui. Let the Yi be the outcome, Xi the treatment level when the treatment is binary, and Ui contain all the additional determinants of the outcome. Then: a. the OLS estimator of the slope will be inconsistent in the case of a randomly assigned Xi since there are omitted variables present. b. Xi and Ui will not be independently distributed if the Xi are randomly assigned. c. β0 represents the causal effect of X on Y when X is zero. d. E(Y|X= 1) is the expected value for the treatment group. e. All of the above. f. None of the above.A possible important environmental determinant of lung function in children is the amount of cigarette smoking in the home. Suppose this question is studied by selecting two groups: Group 1 consists of 23 nonsmoking children 5−9 years of age, both of whose parents smoke, who have a mean forced expiratory volume (FEV) of 2.1 L and a standard deviation of 0.7 L; group 2 consists of 20 nonsmoking children of comparable age, neither of whose parents smoke, who have a mean FEV of 2.3 L and a standard deviation of 0.4 L. A) What are the appropriate null and alternative hypotheses to compare the means of the two groups? B) What is the appropriate test procedure for the hypotheses in Problem A? C) Carry out the test in Problem B using the criticalvalue method. D) Provide a 95% CI for the true mean difference in FEV between 5- to 9-year-old children whose parents smoke and comparable children whose parents do not smoke.A possible important environmental determinant of lung function in children is the amount of cigarette smoking in the home. Suppose this question is studied by selecting two groups: Group 1 consists of 23 nonsmoking children 5−9 years of age, both of whose parents smoke, who have a mean forced expiratory volume (FEV) of 2.1 L and a standard deviation of 0.7 L; group 2 consists of 20 nonsmoking children of comparable age, neither of whose parents smoke, who have a mean FEV of 2.3 L and a standard deviation of 0.4 L.8.31 What are the appropriate null and alternative hypotheses to compare the means of the two groups?8.32 What is the appropriate test procedure for the hypotheses in Problem 8.31?8.33 Carry out the test in Problem 8.32 using the criticalvalue method.8.34 Provide a 95% CI for the true mean difference in FEV between 5- to 9-year-old children whose parents smoke and comparable children whose parents do not smoke.8.35 Assuming this is regarded as a pilot study, how many children…
- A possible important environmental determinant of lung function in children is the amount of cigarette smoking in the home. Suppose this question is studied by selecting two groups: Group 1 consists of 23 nonsmoking children 5−9 years of age, both of whose parents smoke, who have a mean forced expiratory volume (FEV) of 2.1 L and a standard deviation of 0.7 L; group 2 consists of 20 nonsmoking children of comparable age, neither of whose parents smoke, who have a mean FEV of 2.3 L and a standard deviation of 0.4 L. A) Assuming this is regarded as a pilot study, how many children are needed in each group (assuming equal numbers in each group) to have a 95% chance of detecting a significant difference using a two-sided test with α = .05? B) Answer the question in Problem A if the investigators use a one-sided rather than a two-sided test. Suppose 40 children, both of whose parents smoke, and 50 children, neither of whose parents smoke, are recruited for the study. C) How much power would…A possible important environmental determinant of lung function in children is the amount of cigarette smoking in the home. Suppose this question is studied by selecting two groups: Group 1 consists of 23 nonsmoking children 5−9 years of age, both of whose parents smoke, who have a mean forced expiratory volume (FEV) of 2.1 L and a standard deviation of 0.7 L; group 2 consists of 20 nonsmoking children of comparable age, neither of whose parents smoke, who have a mean FEV of 2.3 L and a standard deviation of 0.4 L. Suppose 40 children, both of whose parents smoke, and50 children, neither of whose parents smoke, are recruitedfor the study.*8.37 How much power would such a study have using atwo-sided test with significance level = .05, assuming thatthe estimates of the population parameters in the pilot studyare correct?*8.38 Answer Problem 8.37 assuming a one-sided ratherthan a two-sided test is used.A researcher analyzing the determinants of earnings and she has data on 16 occupation categories that exhausts all possibilities. If the researcher runs a regression of earnings on a binary (dummy variable) for all 16 categories, which least-square assumption is violated?
- One can use the equations of the Markowitz model to derive the CAPM equation. At thispoint, one would be wrong to conclude that this is the CAPM model. What additional argumentis necessary to make the transition from one model to the other?a. All other options are necessary.b. There is a single investor who holds the mean-variance efficient portfolio.c. There is at least one investor who holds the market portfolio.d. Investors know the returns and standard deviations of all securities in the economy.Note- bolded quiz have already answered A possible important environmental determinant of lung function in children is the amount of cigarette smoking in the home. Suppose this question is studied by selecting two groups: Group 1 consists of 23 nonsmoking children 5-9 years of age, both of whose parents smoke, who have a mean forced expiratory volume (FEV) of 2.1 L and a standard deviation of 0.7 L; group 2 consists of 20 nonsmoking children of comparable age, neither of whose parents smoke, who have a mean FEV of 2.3 L and a standard deviation of 0.4 L.*8.31 What are the appropriate null and alternative hypotheses to compare the means of the two groups? *8.32 What is the appropriate test procedure for the hypotheses in Problem 8.31? *8.33 Carry out the test in Problem 8.32 using the criticalvalue method. *8.34 Provide a 95% CI for the true mean difference in FEV between 5- to 9-year-old children whose parents smoke and comparable children whose parents do not smoke. *8.35 Assuming…What are the difficulties in estimating the following model? Use as much detail as possible in answering this question while considering the Gauss-Markov assumptions and OLS estimator. Economic productivity = β0 + β1Unemployment + β2Innovation + θiControls + ei Where unemployment is the average unemployment rate of a country and innovation is an index of R&D performance.
