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- Typed plzz Asap....A hypothesis is a statement that Identifies the connection Specifies the link between a dependent d. variable and two independent variables Draws the relationship between Correlates two variables between two dependent b. O C. and then reject them a. two independent variables variables← Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values: Price $2.50 $3.50 $1.90 $4.20 $3.20 $4.10 Number Sold 760 515 980 250 320 490 D Using simple linear regression and given that the price per cup is $1.75, the forecasted demand for mocha latte coffees will be 1862.8 cups (enter your response rounded to one decimal place). 88
- In the model Y = Bo +B 1X 1 + B 2X 2 + 8, which of these parameters represents a coefficient of an independent variable? the Y the X1 the B1 the eThe 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?Econometrics Thomas Eisensee and David Stromberg wanted to measure how much news coverage of a foreign disaster impacted the amount of disaster relief provided by the U.S. government. They argue that the simple relationship would be biased. Let X = Minutes of News Coverage and Y= Disaster Aid. Choose a variable X2 that could bias the simple relationship. This variable should impact the amount of coverage and impact the amount of aid for reasons other than purely news coverage. Eisensee and Stromberg introduce an instrument Z = During the Olympics. Explain how Z could satisfy the relevant and exogenous criteria. Explain how you could use Z to estimate the impact of X on Y free from X2 bias. Hint: you should mention two stages.
- Suppose the researcher considers the following model : Wage = Bo+B,Female + u, and runs OLS, using wage data on 250 randomly selected male workers and 280 female workers. The researcher has obtained the estimated equation as Wage = 15 (1.00) 3 Female, R = 0.05. (0.5) In the equation, Wage is measured in dollars per hour, Female is a binary variable that is equal to 1 if the person is a female and O if the person is a male. The numbers in the parentheses are the standard errors of the coefficients. Which Statement is NOT correct? The coefficient of Female, -3.00, is statistically significant at 5%. O The p-value for the test that Ho: B = 0, H : B 0 is less than 0.05. This regression may suffer omitted variable bias. R Since insignificant. is too low, the wage difference between men and women is The researcher can increase R- by including more regressors in the model.Imagine you are trying to explain the effect of square footage on home sale prices in the United States. You collect a random sample of 100,000 homes that recently sold. a) Homes can be one of three types: single-family houses, townhomes, or condos. How would you control for a home’s type in a regression model? b) Write down a regression model that includes controls for home type, square footage, and number of bedrooms. c) How would you interpret the es3mated coefficients for each of the variables from part b? Be specific.Determine and discuss the impact of diesel prices on fuel revenues and the impact of gasoline prices on fuel revenues. What is the relationship between meal prices and meals? Define, measure, and discuss the price elasticities. HINT: Find price elasticity of demand by multiplying the slope of the regression line from Excel by the mean real price then divide by the mean quantity demanded. Please do fast ASAP
- Given the following data table: X Y 21 68 72 55 38 59 57 57 45 61 What is the correlation between X and Y? Include 3 decimal places in your answer.Explain what multicollinearity . What are the main problems that multicollinearity creates for OLS estimation results ? Give two ways to detect multicollinearity problem and the hypothesis that are tested ?3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: Year DUIRate;; = atate +a? + BTreatmentt +yControl;t + Eit i Which of the following changes does Boyoung need to make? a) She should include a constant in the regression equation. b) She should not include controls because they're already accounted for by fixed effects. c) She should include a time trend instead of time-fixed effects. d) None of the above are changes she needs to make.