Do you think the regression in Table 5 suffers from omitted variable bias? If yes,which additional variables would you include to control for omitted variable bias? Table 5. regress size hhinc owner hhsizel hhsizez hhsize3, robust noconstantLinear regressionNunber of obs1,593F(5, 1588)3895.70Prob > F0.0000R-squared0.9255Root MSE353.16RobustsizeCoefficient std. err.tP>|t|(95% conf. interval)hhinc6.80 0.000.00456700067170032495.0058845owner404.7925442.6217hhsizel675.808624.2422227.88 0.00628.2585723.3587hhsize2788.660636.4762821.62717.1138860.2073hhsize)993.660958.6329416.95e.000878.65481108.667 The questions below are based on a dataset containing the characteristics of 5,407households. In particular, we will use the following variables:- size: home size, measured in square feet.- hhinc: annual household net income, measured in euros.- owner. dummy variable equal to 1 if the living space is owned, and 0 if the livingspace is rented.- hhsize1: dummy variable equal to 1 if the number of household's members is 1 or2, and 0 otherwise.hhsize2: dummy variable equal to 1 if the number of household's members is 3 or4, and 0 otherwise.hhsize3: dummy variable equal to 1 if the number of household's members is 5 orabove 5, and 0 otherwise.- edu: education level of household's members.The Appendix contains tables with the critical values of the standard normal distribution andthe F distribution.

Regression is used to predict the value of dependent variable based on one or more independent…

Answered: Do you think the regression in Table 5…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A rural state wants to encourage high school graduates to continue their education and attend college. The state collected information on a random sample of high school seniors from across the state 7 years ago and is now observing how many years of education they completed. They believe students decide to achieve more education when they are more capable, have easier access to college education, and the opportunity cost of attending are lower. To explore the factors that affect the years of education completed they have used multiple regression to estimate the years of completed education as a function of: Unemployment rate - the unemployment rate in the county (3.9 – 16.8) County Hr Wage - average starting hourly manufacturing wage in the county Test - student score on college admission test (0 to 100 scale) Dist to college - Distance to near college (measured in 100’s of miles) Tuition - Tuition charged at nearest state university (measured in $1000s)…
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You estimated a single regression relating the annual bonus given to employees of big corporations to the age of those employees. Your simple regression shows a positive value for the slope coefficient. You are absolutely convinced that the true effect of age on bonus amount is negative, so you think you have an omitted variable bias. If you are correct, which of the following is true about the omitted variable? There is some (omitted) variable that positively affects bonus amount and that is positively correlated with age. There is some (omitted) variable that negatively affects bonus amount and that is completely uncorrelated with age. There is some (omitted) variable that positively affects bonus amount and that is negatively correlated with age. There is some (omitted) variable that positively affects bonus amount and that is completely uncorrelated with age.
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A music critic was interested in whether particular variables measured on a song change over time. Two variables the critic considered were a song’s Tempo (in bpm) and a song’s Danceability. We will use the songs written before the year 2000 from the original SpotifySample data set. The data set that you will use to complete this investigation is called SpotifyB2000 and consists of 483 songs. Write the least-squares regression line equation describing Year and Danceability usingproper notation and values. Interpret the slope of the regression line for Year and Danceability in context. Would the interpretation of the y-intercept for Year and Danceability be meaningful? Ifso, interpret it. If not, state why not in one sentence. Calculate and record the coefficient of determination value r2for Year and Danceabilityand interpret this value in context. State the hypotheses for the test of the slope. Write the p-value found in the output from (n), and use the p-value provided in the…

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Do you think the regression in Table 5 suffers from omitted variable bias? If yes, which additional variables would you include to control for omitted variable bias?