You have data on the average productivity of workers for firms across Australia. You also observe various firm-specific characteristics. Which of the following statements is true: Select one: O a. You should weigh for the square root of the number of workers per firm to address for heteroskedasticity. O b. You should control for the number of workers per firm to address for heteroskedasticity. O C. You should not include small firms in the sample because their measure of average productivity is very noisy O d. None of the statements is true

You have data on the average productivity of workers for firms across Australia. You also observe various firm-specific characteristics. Which of the following statements is true: Select one: O a. You should weigh for the square root of the number of workers per firm to address for heteroskedasticity. O b. You should control for the number of workers per firm to address for heteroskedasticity. O C. You should not include small firms in the sample because their measure of average productivity is very noisy O d. None of the statements is true

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You have data on the average productivity of workers for firms across Australia. You also observe various firm-specific characteristics. Which of the following statements true:
Select one:
O a. You should weigh for the square root of the number of workers per firm to address for heteroskedasticity.
O b. You should control for the number of workers per firm to address for heteroskedasticity.
O C. You should not include small firms in the sample because their measure of average productivity is very noisy
O d. None of the statements is true

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