#2 Questions 2-4 are based on the following information:Consider the following population model for household consumption:cons= a Binc+ Bzeduc +B,hhsize + u, where cons is consumption, inc is income, educis the education level of household head, hhsize is the size of a household.2. Suppose a researcher estimates the model and gets the predicted value, cons_hat,and then runs a regression of cons_hat on inc, educ, and hhsize. One cana) be certain that the R2 is equal to 1b) be certain that the R2 is equal to 0c) be certain that the R2 is less than 1 but greater than 0.d) not be certain3. Suppose that the variable for consumption is measured with error, so conss = cons +e, where conss is the mismeaured variable, cons is the true variable, e is random, i.e., eindependent of all the regressors. We would expect that:a) OLS estimators for the coefficients will all be biasedb) OLS estimators for the coefficients will all be unbiasedc) all the standard errors will be bigger than they would be without the measurementerror

Name: #2 Questions 2-4 are based on the following information:Consider the f
Uploaded: 2024-03-20T07:06:41.000Z
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Description: #2 Questions 2-4 are based on the following information:Consider the following population model for household consumption:cons= a Binc+ Bzeduc +B,hhsize + u, where cons is consumption, inc is income, educis the education level of household head, hhsi