using words and mathematical notation, why the Ordinary Least Squares method might not be the best method for analysing cross section data in economics?

Q: Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done…

A: A theoretical idea that represents the economic process using a set of variables is referred to as…

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A: Median voters theorem is used for the electoral voting for the politicians. It assumes that all the…

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A: Panel data, also known as longitudinal data, is information that contains observations on various…

Q: The quality of a literature review depends on a careful selection of data sources. O True False

A: In economics, the literature review belongs to the value judgement of a specfiic economic condition…

Q: Question: What conclusions can you draw from these data?

A: We see that the trends are more or less parallel. So the prices move similarly. and has a strong…

Q: Using Y as the dependent variable and X1, X2, X3, X4 and X5 as the explanatory variables, formulate…

A:

Q: In the December, 1969, American Economic Review (pp. 886-896), Nathanial Leff reports the following…

A: Given information log S/Y = 7.3439 + 0.1596 log Y/N + 0.0254 log G - 1.3520 log D1 - 0.3990 log D2…

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A: Cubic perform are often represented in very few alternative ways. Technically, a cubical perform is…

Q: Pie charts, bar graphs, and time-series graphs give information about:   A. a single variable. B.…

A: Graphs: Single variable graphs: These are the graphs that consist of only one variable. They show…

Q: Three examples of problems in economics using quadratic equations

A: Economics: It refers to the subject under which scarcity of resources has been taken into…

Q: Give an example (besides the ones noted in the text) of a mental model, a visual model, and a…

A: In economics, a model is a theoretical construct that depicts economic processes using a collection…

Q: Econometrics may be defined as the social science in which the tools of economic theory,…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Question 2. Which of the following models can be estimated (following a suitable transformation if…

A: Ordinary least square model is used to estimate the value of dependent variable when independent…

Q: What are the stages of econometrics research

A: Econometrics is the quantitative application of statistical conclusions, economic theory, and…

Q: Explain Standard errors for TSLS (two stage least squares)?

A: Regression analysis of two-stage minus squares (T-SLS) is a statistical method used in the study of…

Q: Consider the following scenario. A sports economist has collected data to test the relationship…

A: Data (quantitative measures) describing an actual economy, past or present, is called economic data…

Q: Using an economic issue (phenomenon) of your choice, can you explain the methodological framework…

A: Econometrics: Econometrics utilizes factual strategies to financial information to give exact…

Q: Explain in detail bias, variance, and the trade-off between them. Feel free to illustrate your…

A: Bias is an illogical or irrational preference or prejudice held by a person, which might be…

Q: Models are used to describe cause-and-effect relationships a. True b. False

A: Models are the versions developed to visualise the real world scenario.

Q: wants to know what the difference is between one-to-many, many-to-many and one-to-one relationships.…

A: Any financial transaction, corporate partnership, or client representation is referred to as an…

Q: In the analysis of any economic phenomenon, a)spatio-temporal perspective is needed. b)there is a…

A: A contradictory unity of the socio-productive type of relations and its material carrier is involved…

Q: Discuss the discipline of economics from the end of the 19th century to the present from an ethical…

A: An economic system is a way for governments or communities to distribute and organise resources,…

Q: Econometric theory and methodology a. Econometrics is a "non-experimental" research methodology that…

A: Anatomy of econometric modeling is given below : Economic theory > mathematical model of theory…

Q: "Describe, using words and mathematical notation, why the Ordinary Least Squares method might not be…

A: Cross Section data is a type of data collected by observing many factors like individuals, firms or…

Q: Explain the concept of Internal and External Validity in relation to statistical analysis?

A: The internal and the external validities of a statistical analysis indicate whether the results of…

Q: Price of a visit Dum Visits per year Assume this graph is providing the travel cost model results…

A: Answer: According to the given graph, there is an inverse relationship between the visits per year…

Q: 2 3 3 2 5 4 1 1 4 3 5 4 4 2 6 3 2     Complete the 5-step model for these data,…

A: The correct answer is given in the second step.

Q: Question 19 Let's say you run a simulation and figure out that your sample is one of the likely…

A: In economics, research is one of the approach to deal with variables and to know about the nature of…

Q: Write three econometric models capturing 1) overall; 2) within; and 3) between variation

A: Econometric models were built from economic data and are utilized with traditional statistical…

Q: In economics graphs are useful as they express visually and display numbers; equations formulas;…

A: In economics relationship between two variables can be expressed with the help of a graph.

Q: Please give a detailed solution with an explanation. Please make sure the graph is visible, clear,…

A: Supply is the quantity of a commodity which a firm is willing and able to sell at a given price and…

Q: Regression analysis and the correlation coefficient can both be used to analyze the relationship…

A: Advantages of using regression analysis instead of correlation coefficient are: (1) Regression…

Q: How Regression models are used for Forecasting purpose?

A: Regression model helps to estimate the relationship between the dependent variable and one or more…

Q: household is frequently used in analyses because more consistent data are usually collected at that…

A: Qualitative research is a kind of study completed with a qualitative way to deal with comprehend the…

Q: In your point of view, what's the difference between qualitative and quantitative data, exactly?…

A: Qualitative data are information about descriptions that can be observed but cannot be computed.…

Q: The following hedonic equation incorporates five attributes: dwelling size, job access, school…

A: Hedonic regression equation estimates the influence of the factors they have on the price or demand…

Q: Is auto correlation possible in cross-sectional data? why?

A: For a given type of series the process of autocorrelation can be defined as the type of lag…

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A: Real per capita GDP shows total economic output measurement of a nation which is divided by people…

Q: Econometric models have nothing to do with the reality." What say you?

A: Econometric models are the part of economic analysis as it uses statistical tools to explain the…

Q: A quality adjusted life year is defined as?   A. Health adjusted life expectancy for men   B. A…

A: Option ‘B’ is the correct answer. Reason: Quality-adjusted life year measures the quality as well…

Q: Review the logic of spuriousness. Can you think up an example where an observed relationship between…

A: Spurious relationship:- Spurious relationship, also known as spuriousness, takes place when 2…

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A: When the government and other national or state officials study and analyze the economy on the basis…

Q: Cities often want to determine how much additional law enforcement will decrease their murder rates.…

A: First equation: murdpc = β0 + β1 polpc + β2 incpc + β3 pvty +u Second equation: polpc = δ0 + δ1…

Q: Why researchers use so many theoretical model to do their research, such as regression model,…

A: In economics, researchers are considered as the people who uses empirical evidences, past…

Q: What are the main models for analyzing quasi-experiment data? Please briefly describe the main ideas…

A: An economic model is a conceptual framework that represents economic procedures using a collection…

Q: An empirical study is done on estimating the value of the houses in a city based on the following…

A: Sample size=1000 Dependent variable=price 5 independent variables

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A: Economic analysis entails evaluating or investigating subjects or concerns from the standpoint of an…