Answered: Q1 In the regression specification y =…

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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Q1 In the regression specification y = a + Bx + δz + ε the parameter a is usually interpreted as: A. the level of y whenever x and z are equal to 1 B. the increase in y whenever x and z increase by one C. a meaningless number that enables a linear functional form to provide a good approximation to an unknown functional form D. none of the above. Q2 When regressing number of crimes committed by an individual against years of education you omit the relevant variable innate ability. Then, the estimated coefficient for education is going to be: A downwards biased B. upwards biased C. biased, but we cannot say in which direction D. not biased Q3 What is an assumption of Instrumental Variables (IV) estimation? A. Instruments must have a strong relationship with the independent variable B. Instruments must have a strong effect on the outcome variable only through the independent variable C. Instruments must have a strong effect on the outcome variable D. Instruments should be uncorrelated with error term and independent variable Q4 You estimate the equation: Y=6.2+0.41X. After finding heteroscedasticity, you run a second equation: Y/X=0.39+6.31/X. What is the effects of X on Y based on your preferred specification? A. A 1 unit change in X increases Y by 6.31 units. B. A 1 unit change in X increases Y by 0.39 units C. A 1 unit change in X increases Y by 6.31%. D. A 1 unit change in X increases Y by 39%

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