You want to find the determinants of suicide rates in Turkey. To investigate the issue, you specified the following model (i refers to region and t refers to year) YBo+ByXq + Regional Dummies + u where Y, is the suicide rate and X, contains only the unemployment rate but no year dummies. Using OLS, you find no significant relationship between suicide rates and unemployment rate variable. Which of the followings can explain this result? Yanıtınız: There is no causal relationship between suicide rate and unemployment There may be regional fixed effects, which are in the error term, that are correlated with unemployment rate 12Lack of interaction variables between regional dummies and unemployment rate. Regional dummies are correlated with unemployment rate the error term that are correlated with unemployment rate.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
![You want to find the determinants of suicide rates in Turkey. To investigate the issue, you specified the following model (i refers to region and t refers to year)
Bo + B,X, + Regional Dummies + u,
where Y, is the suicide rate and X, contains only the unemployment rate but no year dummies. Using OLS, you find no significant relationship between suicide
rates and unemployment rate variable. Which of the followings can explain this result?
Yanıtınız:
There is no causal relationship between suicide rate and unemployment
* There may be regional fixed effects, which are in the error term, that are correlated with unemployment rate
Lack of interaction variables between regional dummies and unemployment rate
Regional dummies are correlated with unemployment rate
There may be year effects. which are in the error berm that are correlated with unemployment rate](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffaea9606-8aa7-43a4-9c24-b9d13be3184d%2Fb393efe1-5d27-4ad9-85ac-efae87e4d2fa%2F5ckp5hf_processed.jpeg&w=3840&q=75)
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