) State whether the following statement(s) are true/false with justification i) If the model is linear in parameters, but there is non-linear relation between dependent and independent variables, OLS cannot be used. ii) OLS can be applied to estimate a multiple linear regression model, and each slope coefficient shows the full effect of an individual variable on the dependent variable iii) Both slope and intercept will change if dependent and independent variables are divided by factor k (=1000). B) In a left-tailed test where you reject Ho only in the lower tail, what is the p-value if Z = (-) 1.00?
) State whether the following statement(s) are true/false with justification i) If the model is linear in parameters, but there is non-linear relation between dependent and independent variables, OLS cannot be used. ii) OLS can be applied to estimate a multiple linear regression model, and each slope coefficient shows the full effect of an individual variable on the dependent variable iii) Both slope and intercept will change if dependent and independent variables are divided by factor k (=1000). B) In a left-tailed test where you reject Ho only in the lower tail, what is the p-value if Z = (-) 1.00?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A) State whether the following statement(s) are true/false with justification
i) If the model is linear in parameters, but there is non-linear relation between dependent and independent variables, OLS cannot be used.
ii) OLS can be applied to estimate a multiple linear regression model, and each slope coefficient shows the full effect of an individual variable on the dependent variable
iii) Both slope and intercept will change if dependent and independent variables are divided by factor k (=1000).
B) In a left-tailed test where you reject Ho only in the lower tail, what is the p-value if Z = (-) 1.00?
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