Does model C violate an important assumption? If so, which one? O Model C has omit variable bias. Model C violates the assumption of no perfect collinearity Model C violates the zero conditional mean assumption. Model C has multicollinearity issue.
Does model C violate an important assumption? If so, which one? O Model C has omit variable bias. Model C violates the assumption of no perfect collinearity Model C violates the zero conditional mean assumption. Model C has multicollinearity issue.
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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Transcribed Image Text:MODEL C
Dependent Variable: PSODA
Method: Least Squares
Sample: 1410
Included observations: 391
Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
0.587703
0.031288
18.78366
0.0000
PRPBLCK
0.036566
0.019134
1.911017
0.0567
INCOME
-1.09E-07
2.68E-07
-0.405990
0.6850
BK
0.066577
0.009123
7.297549
0.0000
KFC
0.038109
0.010344
3.684257
0.0003
RR
0.083831
0.010898
7.692683
0.0000
NJ
0.042735
0.008673
4.927477
0.0000
PFRIES
0.400242
0.035910
11.14573
0.0000
R-squared
0.558109
Mean dependent var
1.044962
Adjusted R-squared
0.550032
S.D. dependent var
0.088419
S.E. of regression
0.059311
Akaike info criterion
-2.791796
Sum squared resid
1.347315
Schwarz criterion
-2.710595
Log likelihood
553.7961
F-statistic
69.10415
0.000000
Durbin-Watson stat
1.858383
Prob(F-statistic)

Transcribed Image Text:Question 6
Does model C violate an important assumption? If so, which one?
Model C has omit variable bias.
Model C violates the assumption of no perfect collinearity
Model C violates the zero conditional mean assumption.
O Model C has multicollinearity issue.
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