Suppose that there is a running variable (such as GPA) that have a sharp cutoff (such as 3.8). If a student has a GPA above the cutoff, they are eligible to receive a very generous scholarship to attend college. You are interested in studying the effects of attending college on risky health behaviors. Given this description, which of the following is the most appropriate technique for your study? difference-in-difference (DID) Regression discontinuity design (RDD) instrumental variables (IV) 100

Suppose that there is a running variable (such as GPA) that have a sharp cutoff (such as 3.8). If a student has a GPA above the cutoff, they are eligible to receive a very generous scholarship to attend college. You are interested in studying the effects of attending college on risky health behaviors. Given this description, which of the following is the most appropriate technique for your study? difference-in-difference (DID) Regression discontinuity design (RDD) instrumental variables (IV) 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you work for North Dakota DNR Grand Forks office. DNR would like to know whether they should set aside some conservation land, previously slated to be logged, for a potential state park. You are helping do a travel-cost analysis to estimate the benefits of the set-aside. You collected data from 500 visitors who came to a state park in a neighboring state. You ran regression analysis and controlled for these visitors' age, income, education, employment status, and other important factors that might affect the number of visits. With all the information, you have developed the following relationship: (a) (b) Cost to Visit $20 $40 $80 # of Visits Per Person Per Year 8 6 2 Graph the demand curve for the number of visits as a function of the "price" -- the travel cost. Based on demographic information about the people living in the vicinity of the proposed park, you have estimated that 10,000 people will take an average of 4 visits per year. For the average person, calculate: (1) The…
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Which of the following is true of heteroskedasticity? a) The R-squared statistic is affected by the presence of heteroskedasticity b) Heteroskedasticty causes inconsistency in the Ordinary Least Squares estimators c) The OLS estimators are not the best linear unbiased estimators if heteroskedasticity is present d) It is not possible to obtain F statistics that are robust to heteroskedasticity of an unknown form