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Q. Which of the following is true of heteroscedasticity?
Options-
a. Population R-squared is affected by the presence of heteroscedasticity.
b. Heteroscedasticity causes inconsistency in the ordinary least squares estimators.
c. The ordinary least squares estimators are not the best linear unbiased estimators if heteroscedasticity is present.
d. It is not possible to obtain F statistics that are robust to heteroscedasticity of an unknown form.
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- Which of the following is true of heteroskedasticity? a) The R-squared statistic is affected by the presence of heteroskedasticity b) Heteroskedasticty causes inconsistency in the Ordinary Least Squares estimators c) The OLS estimators are not the best linear unbiased estimators if heteroskedasticity is present d) It is not possible to obtain F statistics that are robust to heteroskedasticity of an unknown form(Yi, X1i, X2i) satisfy the assumptions of the attachment. You are interestedin β1, the causal effect of X1 on Y. Suppose that X1 and X2 are uncorrelated.You estimate β1 by regressing Y onto X1 (so that X2 is not included in theregression). Does this estimator suffer from omitted variable bias? Explain.Consider a class with 80 enrolled students. None of the students were ill at the beginning of the school year. On August 30th, 10 students reported having a common cold. All continued to be ill on September 1st, but all 10 recovered within 3 days. On September 15th, 5 more students had a cold. All of these students continued to be ill on September 16th, but all recovered 5 days later. In this example, assume that a person cannot have a cold more than once.calculate the cumulative incidence of the common cold in the class during the month of september
- Q1. State the property of an estimator that gives a correct estimate of the population parameter of interest, but only on average. Q2. State the property of ian estimal or thal converges to the populalion paaameter of interest as the sample size goes to infinity. Q3. Why is an efficient estimator a desirable property of the OLS estimator? Q4. Stare the assumption(s)under the classical linearregression model giving rise to a biased standard error of the coefficient estimates when violated.With Panel Data, if we assume that the individual effects vi are not correlated with the regressors Xit (i.e. E(vi|Xit) = 0), which one of the following statements is correct: The Fixed Effects estimator is not consistent. Both the OLS and the Random Effects estimators are not consistent. The OLS estimator is not consistent, but the Random Effects estimator is consistent. The OLS and the Random Effects estimator are consistent. All of the above. None of the aboveDISCUSS IF TRUE OR FALSE Heteroscedasticity can be tested by just comparing variances of 2 random splits sets of error terms.
- Explain in detail bias, variance, and the trade-off between them. Feel free to illustrate your understanding, but you must EXPLAIN your understanding in text.Imperfect multicollinearity occurs when A. The explanatory variables are highly correlated with the dependent variable B. The explanatory variables are highly correlated with the error term C. The dependent variable is highly correlated with all the explanatory variables D. Two or more explanatory variables are highly correlated with one anotherIII. Determine whether the statement is true or false. Write T if the statement is true and F if false on the blank provided before each item. ________1. Parameter is a measure that describes a population. ________2. Statistic is a measure that describes a sample. ________3. An example of a parameter is ?̅. ________4. An example of a statistic is ?. ________5. The given value in, “50% of the Philippine senators agreed to support a specific bill.” is a statistic.
- Suppose employers care about overall productivity Z, which is made up of two components, X and Y, such that Z=X+Y (and employers know this productivity function). Suppose there are two groups (male and female) whose average Zs are the same (i.e. Z_M =Z_F), but X_M < X_F and Y_M > Y_F (and again, employers know these population averages). Researchers decide to run a resume-based audit study where they randomize names based on gender (using typically male or female names) but hold constant Y. They provide no information on X. Which of the following would suggest taste-based discrimination? ● The call-back rate is the same for both sexes. ● The call-back rate is higher for men than for women ● We can't use differences in call-back rates to find suggestive evidence of taste-based discrimination because there's too many other factors that are different across the resumes. ● The call-back rate is higher for women than for menq7- Which statement is incorrect for statistical independence between X and Y? Select one: a. The occurence of Y has no impact on the probability for the occurence of X b. If X and Y occur jointly, it is purely by chance c. The correlation between X and Y is 0 d. The correlation between X and Y is 1Explain whether the empirical evidence supports the claim that “investors are solely concerned with mean and variance”
