An economist wants to study the effect of exercise on obesity. She collects data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income (one of the explanatory variables in the model) is correlated with the unobserved family effect, ai? a) Fixed effects estimation b) random effects estimation c) weighted least squares estimation d) ordinary least squares estimation

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 25PPS
icon
Related questions
Question

An economist wants to study the effect of exercise on obesity. She collects data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income (one of the explanatory variables in the model) is correlated with the unobserved family effect, ai?

a) Fixed effects estimation

b) random effects estimation

c) weighted least squares estimation

d) ordinary least squares estimation

 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL