Under the least square procedure, the larger the û (in absolute terms), the larger thea. Standard errorb. Regression errorc. Sum of squares residualsd. Difference between the true parameter and the estimated parameterO a. aO b. bО с. с○ d. d

Step 1:The least squares procedure aims to minimize the sum of the squares of the residuals (the…

Answered: Under the least square procedure, the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You estimated a regression with the following output. Source | SS df MS Number of obs = 289 -------------+---------------------------------- F(1, 287) = 41986.64 Model | 664544048 1 664544048 Prob > F = 0.0000 Residual | 4542496.25 287 15827.5131 R-squared = 0.9932 -------------+---------------------------------- Adj R-squared = 0.9932 Total | 669086544 288 2323217.17 Root MSE = 125.81 ------------------------------------------------------------------------------ Y | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- X | 43.81013 .2138056 204.91 0.000 43.38931 44.23096 _cons | 49.31707 16.96222 2.91 0.004 15.93094 82.70319…
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In an OLS regression, which value represents the "best" R2 in terms of explained variance in the dependent variable? A. 2.53 B. 16.22 C. .001 D. 0.53
regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P,) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income (/) 0.45 0.52 R-squared Adjusted R-squared 0.8672 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. i. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 11. 111. your firm has? What would be the effect of a price increase on the firm's total revenue? iv. Assess the probable impact on your firm if the firm producing geod Y decreases their price by 10%. Explain the adjusted R-squared Is the good X a normal or inferior good? What is the relationship between good X and good Y? V. vi. vii. viii..
A researcher estimates a regression using two different software packages.The first uses the homoskedasticity-only formula for standard errors. Thesecond uses the heteroskedasticity-robust formula. The standard errors arevery different. Which should the researcher use? Why?
Economics Help: Please see attached. Screenshot 1 is the context and screenshot 2 is the drop downs. I just need the answer to the drop downs please
2. Consider the following regression model and the result of estimation: distance Bo + B,angle + u %3D Where: distance = distance (in feet) traveled by a baseball, angle = the angle (in degrees) the baseball was hit, %3! u= regression error. Dependent Variable: DISTANCE Method: Least Squares Sample: 1 13 Included observations: 13 Variable Coefficient Std. Error t-Statistic Prob. C. ANGLE 32.93084 0.785542 5.146819 1.981191 0.0003 0.0731 169.4891 1.556309 a) Breusch-Godfrey test has been performed that produced the following result. Discuss the test result. Breusch-Godfrey Serial Correlation LM Test: Null hypothesis: No serial correlation at up to 2 lags F-statistic 6.534685 Prob. F(2,9) 7.698535 Prob. Chi-Square(2) 0.0177 0.0213 Obs R-squared b) RESET test has been performed that produced the following result. Discuss the test result. Ramsey RESET Test Equation: EQ01 Specification: DISTANCE C ANGLE Omitted Variables: Powers of fitted values from 2 to 3 Value 475.8260 60.71504 df…
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If the model y = ßo + ß1x1 + ß2x2 + v satisfies the first Gauss-Markov assumptions, then v has: a. a zero mean and is correlated with only x1 b. C. a zero mean and is correlated with x₁ and x2 a zero mean and is correlated with only x2 d. a zero mean and is uncorrelated with X1 and X2 a. a O b. b О с. C ○ d. d
Question 19 Lot's say you run a simulation and figure out that your sample bs one of the likely sampies that could have come from a DGP of 0. What would that mean? • A That is a good sign. Our model is good and probably explains a lot of variation. • B This is a bad sign for our model because a DGP of 0 means there is no relationship between the explanatory and outcome variable. • C This does not mean anything for our model. We have to run supernova to find out about how good our model is. • Dit depends on what our b Type Markdown and LaTeX: a Question 20 14 MacBook Pro
Consider the OLS estimator 3;. Under the Gauss-Markov assumptions, O the estimator is the best linear unbiased estimator. O the estimator is asymptotically normally distributed. O the estimator has the properties stated in the other three possible answers. O the estimator is consistent.
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Under the least square procedure, the larger the û (in absolute terms), the larger the a. Standard error b. Regression error c. Sum of squares residuals d. Difference between the true parameter and the estimated parameter O a. a O b. b О с. с ○ d. d