Which model is the regression model given below called in econometrics?? y = Bo + Bix1 + Bx2 + Br3 + ... + BAk Simple regression model Sample regression model b) C) Population regression model d) Time regression model Leave blank
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- Suppose you have run four regression models: A, B, C, and D. You are going to make a decision on which one to use just based on the adjusted r² value. Here are the adjusted r² values for each model: A: 0.71 B: 0.57 C: 0.65 D: 0.76 Which regression model would you choose based on the adjusted r²? OD since it has the highest adjusted r² value B since it has the lowest adjusted r² OC since it has an adjusted r² between the adjusted r² of regressions B and D. Either B or C since they have the lowest adjusted r²A realtor was investigating the price of real estate based on the size of the house in square feet x1 and if the house was within walking distance of an "A" rated public school. The indicator variable is defined as x = 1 if the house is within walking distance of an "A" rated public school and x = 0 if the house is NOT within walking distance of an "A" rated public school. If there was interaction in the regression problem, an appropriately fit regression model would have…? a) A different slope and different y-intercept for those within walking distance and those not. b) A different y-intercept for those that were within walking distance and those that were not; the slope would not change. c) A different slope, but not a different y-intercept for those within walking distance and those not. d) Cannot be determinedWhich one of the following is NOT an assumption of the classical linear regression model (CLRM)? Select one: a. The disturbance terms are independent of one another. b. The dependent variable is not correlated with the disturbance terms. c. The explanatory variables are uncorrelated with the error terms. d. The disturbance terms have zero mean.
- Suppose that an economist has been able to gather data on the relationship between demand and price for a particular product. After analyzing scatterplots and using economic theory, the economist decides to estimate an equation of the form Q= aPb, where Q is quantity demanded and P is price. An appropriate regression analysis is then performed, and the estimated parameters turn out to be a = 1000 and b = - 1.3. Now consider two scenarios: (1) the price increases from $10 to $12.50; (2) the price increases from $20 to $25. a. Do you predict the percentage decrease in demand to be the same in scenario 1 as in scenario 2? Why or why not? b. What is the predicted percentage decrease in demand in scenario 1? What about scenario 2? Be as exact as possible.what are the key features , Strength and limitation of following model? and when which model should be used? Ordinary Least Squares Logit regression model Probit regression modelUsing the findings, to answer the following questions: A-Write down the estimated regression equation, B-Interpret the estimated slope coefficient of the variable "AGE". .
- Which of the following is a consequence of severe multicollinearity in a regression model? A. High standard errors for the estimated coefficientsB. Lower standard errors for the estimated coefficientsC. The OLS estimator becomes biasedD. The dependent variable becomes constantSuppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. Y=α+βaA+βpP+εY=α+βaA+βpP+ε Now suppose that the estimate of the model produces following results: α=344.585α=344.585, ba=0.102ba=0.102, bp=−11.192bp=−11.192, sba=0.173sba=0.173, sbp=4.487sbp=4.487, R2=0.813R2=0.813, and F-statistic=11.361F-statistic=11.361. Note that the sample consists of 10 observations. 1.) According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures decrease or increase sales by approximately 102,813 or 11,192 gallons. Similarly, a $1 increase in the selling price decrease or increase sales by approximately 813,11,192 or 102 gallons. 2.)Which of the independent variables (if any) appears to be statistically significant (at the 0.05…Define Interpretation of coefficients in polynomial regression models?
- 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?Discuss and explain each of the assumptions of the simple linear regression model.From the following data, determine if the data has a positive or a negative relationship with each other. Showcase the regression line, and determine if the data provided fits the approximate curve.