You have data on the average productivity of workers for firms across Australia. You also observe various firm-specific characteristics. Which of the following statements is true: Select one: O a. You should weigh for the square root of the number of workers per firm to address for heteroskedasticity. O b. You should control for the number of workers per firm to address for heteroskedasticity. O C. You should not include small firms in the sample because their measure of average productivity is very noisy O d. None of the statements is true

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.9P
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You have data on the average productivity of workers for firms across Australia. You also observe various firm-specific characteristics. Which of the following statements true:
Select one:
O a. You should weigh for the square root of the number of workers per firm to address for heteroskedasticity.
O b. You should control for the number of workers per firm to address for heteroskedasticity.
O C. You should not include small firms in the sample because their measure of average productivity is very noisy
O d. None of the statements is true
Transcribed Image Text:You have data on the average productivity of workers for firms across Australia. You also observe various firm-specific characteristics. Which of the following statements true: Select one: O a. You should weigh for the square root of the number of workers per firm to address for heteroskedasticity. O b. You should control for the number of workers per firm to address for heteroskedasticity. O C. You should not include small firms in the sample because their measure of average productivity is very noisy O d. None of the statements is true
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