One is curious about the relationship between wage and experience. Suppose that wage increases with experience, but at a decreasing rate. If you estimate the following regression using OLS: wage = fo + Biexperience + u, the estimator for B, is a) biased and inconsistent O b) unbiased and consistent c) biased and consitnt O d) unbiased and inconsistent You are interested in the relationship between crime rate and police expenditure at a state level. Suppose that states tend to increase budgets for police expenditure in response to high crime rates. If you run the following regression using OLS: crime = fo + Biexpenditure + u, %3D you are faced with which of the following threats to internal validity? O There is no threat to internal validity in this case. O Simultaneous causality O Sample selection bias O Misspecification of the functional form

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
100%

Pls answer both questions, I will upvote

One is curious about the relationship between wage and experience. Suppose that wage increases with experience, but at a
decreasing rate. If you estimate the following regression using OLS:
wage =
Po + Biexperience + u,
the estimator for B is
a) biased and inconsistent
O b) unbiased and consistent
O o biased and consistent
O d) unbiased and inconsistent
You are interested in the relationship between crime rate and police expenditure at a state level. Suppose that states tend to
increase budgets for police expenditure in response to high crime rates. If you run the following regression using OLS:
crime = fo + Biexpenditure + u,
you are faced with which of the following threats to internal validity?
O There is no threat to internal validity in this case.
O Simultaneous causality
Sample selection bias
O Misspecification of the functional form
Transcribed Image Text:One is curious about the relationship between wage and experience. Suppose that wage increases with experience, but at a decreasing rate. If you estimate the following regression using OLS: wage = Po + Biexperience + u, the estimator for B is a) biased and inconsistent O b) unbiased and consistent O o biased and consistent O d) unbiased and inconsistent You are interested in the relationship between crime rate and police expenditure at a state level. Suppose that states tend to increase budgets for police expenditure in response to high crime rates. If you run the following regression using OLS: crime = fo + Biexpenditure + u, you are faced with which of the following threats to internal validity? O There is no threat to internal validity in this case. O Simultaneous causality Sample selection bias O Misspecification of the functional form
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman