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- 8. Which of the following best describes the linear probability model? The model is the application of the linear multiple regression model to a binary dependent variable The model is an example of probit estimation The model is another form of logit estimation The model is the application of the multiple regression model with a binary variable as at least one of the regressors OOIn a linear model with the typical equation: Y = B*X+ u, which of the following statements is true? OA. If there is a negative relationship between X and Y, then it means B> 0. OB. The quantitative relationship between X and Y is represented by the term 'u." C. If B<0, then it means there is no relationship between X and Y. D. none of the above.(1.4) Consider the following IS-LM model: I Y=C+I+G C=100+0.4(Y-T) I= 150 +0.2Y - 4,000r r = 0.01 with G = 200 and T = 100. (a) Derive the IS curve and draw it in an appropriate diagram. (b) Calculate the equilibrium values of Y, C, I and r. (c) What is the impact of decreasing government spending to G' = 180 in terms of the new equilibrium value Y"? (d) Suppose the central bank decides it wants to counteract the restrictive fiscal policy. What exactly (i.e. we look for graphical and numerical answers) can the central bank do in order to keep equilibrium output at the value obtained for Y in (b)?
- 3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: Year DUIRate;; = atate +a? + BTreatmentt +yControl;t + Eit i Which of the following changes does Boyoung need to make? a) She should include a constant in the regression equation. b) She should not include controls because they're already accounted for by fixed effects. c) She should include a time trend instead of time-fixed effects. d) None of the above are changes she needs to make.3. The following model is a simplified version of the multiple regression model used by BEST Econometrics Group to study the trade off between time spent sleeping and working to look at other factors affecting sleep: sleep %3D Bo + Bitotwrk + Bzeduис + Взаде + m, where sleep and totwork (total work) are measure in minutes per week and educ and age are measured in years. (i) If adults trade sleep for work, what is the sign of B1? (ii) What signs do you think B2 and ß3 will have? (iii) Using the data in SLEEP75.RAW, the estimated equation is sleep = 3,638. 25-. 148totwrk – 11.13educ – 2. 20age + µi If someone works five hours per week, by how manu minutes is sleep predicted to fall? Is this a large tradeoff? (iv) Discuss the sign and magnitude of the estimated coefficient on educ. (v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?In the model Y = Bo +B 1X 1 + B 2X 2 + 8, which of these parameters represents a coefficient of an independent variable? the Y the X1 the B1 the e
- 4- The manager of Collins Import Autos believes the number of cars sold in a day(Q) depends on two factors: (1) the number of hours the dealership is open (H) and (2) the number of salespersons working that day (S ). After collecting data for two months (53 days), the manager estimates the following log-linear model: Q = aHbSc ----- a. Explain how to transform this log-linear model into a linear form that can be estimated using multiple regression analysis. b. How do you interpret coefficients b and c? If the dealership increases the number of salespersons by 20 percent, what will be the percentage increase in daily sales? c. Test the overall model for statistical significance at the 5 percent significance level.Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation with all partsWhat is a linear regression model? What is measured by the coefficients ofa linear regression model? What is the ordinary least squares estimator?