True/False Explain. Answer True or False, and then write 2-4 sentences explaining why. The explanation is key to getting credit. Your are estimating a simple regression where the unemployment rate -- which is always strictly positive -- is the dependent variable and a state's minimum wage -- which is also always strictly positive -- is the independent variable. The constant must be positive. Edit Incort Toblo Cormat

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 12
True/False Explain. Answer True or False, and then write 2-4 sentences explaining why. The
explanation is key to getting credit.
Your are estimating a simple regression where the unemployment rate -- which is always strictly
positive -- is the dependent variable and a state's minimum wage -- which is also always strictly
positive - is the independent variable. The constant must be positive.
Edit View Insert Format Tools
Table
12pt
Paragraph v
B
I
v T2 v
p.
17 words
</> 7
Question 13
True/False Explain. Answer True or False, and then write 2-4 sentences explaining why. The
explanation is key to getting credit.
You estimate a regression of a child's health (dependent variable) on their income (independent
variable). You know that higher income parents work more, and longer work ours can negatively
effect kids health. But, you run a simple regression anyway, and do not include parent's hours
worked. If you calculate the residuals, you will find a negative covariance between those residuals
and education, in violation of assumption 4.
Edit
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12pt v
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v T? v
Transcribed Image Text:Question 12 True/False Explain. Answer True or False, and then write 2-4 sentences explaining why. The explanation is key to getting credit. Your are estimating a simple regression where the unemployment rate -- which is always strictly positive -- is the dependent variable and a state's minimum wage -- which is also always strictly positive - is the independent variable. The constant must be positive. Edit View Insert Format Tools Table 12pt Paragraph v B I v T2 v p. 17 words </> 7 Question 13 True/False Explain. Answer True or False, and then write 2-4 sentences explaining why. The explanation is key to getting credit. You estimate a regression of a child's health (dependent variable) on their income (independent variable). You know that higher income parents work more, and longer work ours can negatively effect kids health. But, you run a simple regression anyway, and do not include parent's hours worked. If you calculate the residuals, you will find a negative covariance between those residuals and education, in violation of assumption 4. Edit View Insert Format Tools Table 12pt v Paragraph v I A v v T? v
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