Marco and Sarah are economists. Marco believes that raising taxes on capital gains will divert people from investing in capital stock market. To the contrary, Sarah is confident that investing in capital marketis similar to gambling and no tax can stop people from buying stocks. They decide to use data and resolve their debate empirically. This is an example ofdescribing the economy.testing hypothesis.qualifying relationships between certain variables.predicting the future.

By looking at applicable information and dissecting it measurably, they can assess whether there is…

Answered: Marco and Sarah are economists. Marco…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following model studies human welfare using the General Social Survey in the US: happy = 0.014 + 0.209regattend + 0.103occattend + 0.027income + 0.009educ +0.003 female where happy is a dummy variable equal to one if a person is happy, and 0 otherwise: regattend is a dummy variable equal to one if a person regularly attends church, and 0 otherwise: occattend is a dummy variable equal to one if a person occasionally attends church, and 0 otherwise; income is family income in tens of thousands: educ is years of schooling: female = 1 if female. = 0 otherwise Interpret the impact of religion on happiness.
Our null hypothesis is that the true coefficient is zero. In which case would we choose to use a one-sided alternative hypothesis over a two-sided alternative hypothesis? We choose a one sided alternative hypothesis when we have a large sample size. We choose a one sided alternative hypothesis when we specify a low (0.01) significance level. It does not matter what type of alternative hypothesis we specify. Choose a one sided alternative hypothesis when the theory and literature suggests either that the true coefficient should be greater than zero or that the true coefficient should be less than zero.
Old answer is not good
Which event best fits the description of a natural experiment? Group of answer choices O. A levee break floods a town while a similar town nearby is spared. O. People start leaving a state due to perceived excessive taxes and poor government. O. A town’s economy revives thanks to a new zoo and aquarium that draw tourists. O. Unusual winter storms cause all businesses in an entire area to shut down for two weeks. O. Years of drought gradually ruin the economy of a small nation.
Consider the experiment of a toss of two coins. A: observes one head.B: observes two heads. Find P(A) and P(B). Group of answer choices P(A) = 0.1 and P(B) = 0.2 P(A) = 0.25 and P(B) = 0.25 P(A) = 0.5 and P(B) = 0.25 P(A) = 0.25 and P(B) = 0.5 P(A) = 0.5 and P(B) = 0.5
Why would I use a one-tailed (directional) hypothesis? What are the limitations of using a one-tailed hypothesis?
26. A mail order company has conducted a survey to assess whether at least 95% of their customers are satisfied with their most recent order. The results show that of the 280 customers asked, 270 said they were satisfied, with the final 10 saying they were dissatisfied. They have asked you to A conduct a hypothesis test at the 5% level to assess whether there is sufficent evidence to show that more than 95% of their customers are satisfied. What should your null and alternative hypotheses be? Ho:u = 0.95 H1:µ > 0.95 Ho:µ > 0.95 H:µ = 0.95 Ho:u 0.95 = 0.95 H: µ + 0.95 Ho:µ + 0.95 H:µ = 0.95
What are the main models for analyzing quasi-experiment data? Please briefly describe the main ideas and differences between these models.

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