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- Explain the concept of Testing Hypotheses on Two or More Coefficients?Please answer all 3 sub-sections of this questionThe following model studies human welfare using the General Social Survey in the US: happy = 0.014 + 0.209regattend + 0.103occattend + 0.027income + 0.009educ +0.003 female where happy is a dummy variable equal to one if a person is happy, and 0 otherwise: regattend is a dummy variable equal to one if a person regularly attends church, and 0 otherwise: occattend is a dummy variable equal to one if a person occasionally attends church, and 0 otherwise; income is family income in tens of thousands: educ is years of schooling: female = 1 if female. = 0 otherwise Interpret the impact of religion on happiness.
- According to Environmental Kuznets curve, it is expected that there is an Inverse-U shape relationship between pollution and real income such that the following quadratic functional form (regression model) must be specified: Y = a1 + a2 X + a3 X² + u where the variables Y and X represent respectively air pollution (CO2) and real income (RGDP). u is the random error. a) Suppose a researcher wants to investigate the relationship between pollution and real income by defining a linear functional form such as Y = B1+ B2 X+e. Show technically how you test whether quadratic form or linear form is the correct model specification using Ramsey's Reset test. b) Suppose R² is found 0.75 from quadratic form, 0.55 from linear form and 0.73 from the auxiliary regression. Given n=35, carry out Reset test and interpret the result. c) Suppose you found out that the correct specification is the quadratic regression. In this case, would estimating the linear functional form result in an unbiased estimate…In general, what is true about the relationship between the Sum of Squared Residuals in the restricted and unrestricted model? a. SSRr = R-squared * SSRur b. SSRr < SSRur c. SSRr > SSRur d. SSRr = SSRurEastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $165,000. Variable processing costs are estimated to be $5 per book. The publisher plans to sell single-user access to the book for $44. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand price of the e-book. (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) = (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given single-user access price taking into account the above demand function. What is the profit estimated by your model for the given costs and single user access price (in dollars). $ 3736 X (c) Use a data table that varies price from $50 to $400…
- A theoretical model attempts to identify every possible determinant of an event. True FalseComparing the Chamberlin model with the Cournet model, explain it on the figure.The following model can be used to study whether campaign expenditures affect election outcomes: vote A = Bo + Bilog(expendA) + B₂log (expendB) + 33prtystrA + u where vote is the percentage of the vote received by Candidate A, expendA and expendB are campaign expenditures by Candidates A and B, and prtystrA is a mea- sure of party strength for Candidate A (the percentage of the most recent presidential vote that went to A's party). 1. What is the interpretation of ₁? 2. In terms of the parameters, state the null hypothesis that a 1% increase in A's expenditures is offset by a 1% increase in B's expenditures. 3. Estimate the given model using the data in VOTE1.dta (from Wooldridge) and report the results in usual form. Do A's expenditures affect the outcome? What about B's expenditures? Can you use these results to test the hypothesis in part 2?
- First present the equations used in the empirical test of the Heckscher-Ohlin- Vanek (HOV) model explaining all variables, vectors and matrices used. Then present both hypotheses of the HOV model and explain how they relate to the original Heckscher-Ohlin-Samuelson hypothesis.Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $156,000. Variable processing costs are estimated to be $9 per book. The publisher plans to sell single-user access to the book for $41. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand 4,000 -6p, where p is the price of the e-book. (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given single-user access price taking into account the above demand function. What is the profit estimated by your model for the given costs and single user access price (in dollars). (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) (c) Use a data table that varies price…The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The accompanying table provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. According to the nonlinear model, which of the following is the projected revenue figure for Silver tickets based on its new price? Click the icon to view the ticketing model. OA. $1,224.63 B. $1,132.08 C. $1,163.02 D. $1,316.92 Ticketing Model Atlas Movie Theater Ticketing Data Ticket Class Classic Silver Gold ... Current Average Elasticity Total Rate Daily Seating Sold Capacity $8.45 $13.25 80 $17.50 30 150 Print -1.5 -2 -1 Done 300 Price Range $6.50 $7.50 $11.50 $12.50 $15.50 $16.50 1 X