Chapter 13, Problem 13.14AC

Suppose a researcher believes that the occurrence of natural disasters such as earthquakes leads to increased activity in the construction industry. he decides to collect province-level data on employment in the construction industry of an earthquake-prone country, like Japan, and regress this variable on an indicator variable that equals 1 if an earthquake took place in that province in the last five years. a. Should the researcher include province fixed effects in order to control for location specific characteristics of the labor market? b. What can the researcher to control for the location effects?

A researcher wants to investigate the relationship between the length of a service call (in minutes) between a client and a computer technician, and the number of electronic components in the computer that must be repaired or replaced. The data is given in Table Q3. (a) Determine a relationship between the two variables mentioned above and comment on the relationship. (b) Estimate the number of components that need to be repaired if a customer spends half an hour on the phone for a service call (c) Estimate the length of the service call if a client has an issue that requires 12 components to be fixed.

Suppose that in a research it was discovered that those who majored in math, engineering, or computer science scored higher on tests measuring "problem-solving" ability at the end of 4 years of college than did those students who did not major in these fields.    What is the dependent variable in this study? Is the dependent variable clearly defined?

Consider data on every game played by the Brooklyn Nets in 2014 (82 games) that includes the variables margin, - the Net's margin of victory (number of points the Nets scored minus the number of points their opponent scored) for game i, and • home; - a dummy variable equal to 1 when the Nets are the home team (game i was played in their home arena) and equal to 0 when they are the away team (game i was played in the opponent's arena). I use the least-squares method to estimate the following regression model margin = a + ßhome; + ei Below is the Stata output corresponding to the estimated regression line: regress margin home if team===== "Brooklyn Nets" . Source Model Residual Total margin home _cons SS 1459.95122 15252.0488 16712 df 1459.95122 1 80 190.65061 None of the above 81 206.320988 Coef. Std. Err. 8.439024 3.049595 -5.219512 2.156389 MS t Number of obs F(1, 80) Prob > F R-squared O The Nets lost more games than they won in 2014 P>|t| 2.77 0.007 -2.42 0.018 Adj R-squared = Root…

A medical student at a community college in city Q wants to study the factors affecting the systolic blood pressure of a person (Y). Generally, the systolic blood pressure depends on the BMI of a person (B) and the age of the person A. She wants to test whether or not the BMI has a significant effect on the systolic blood pressure, keeping the age of the person constant. For her study, she collects a random sample of 150 patients from the city and estimates the following regression function: Y= 15.50 +0.90B + 1.10A. (0.48) (0.35) The test statistic of the study the student wants to conduct (Ho: B, =0 vs. H4: B, #0), keeping other variables constant is. (Round your answer to two decimal places.) At the 5% significance level, the student will v the null hypothesis. Keeping BMI constant, she now wants test whether the age of a person (A) has no significant effect or a positive effect on the person's systolic blood pressure. So, the test statistic associated with the one-sided test the…

Suppose you want to test whether girls who attend a girls’ high school do better in math than girls who attend coed schools. You have a random sample of senior high school girls from a state in the United States, and score is the score on a standardized math test. Let girlhs be a dummy variable indicating whether a student attends a girls’ high school. (i) What other factors would you control for in the equation? (You should be able to reasonably collect data on these factors.) (ii) Write an equation relating score to girlhs and the other factors you listed in part (i). (iii) Suppose that parental support and motivation are unmeasured factors in the error term in part (ii). Are these likely to be correlated with girlhs? Explain. (iv) Discuss the assumptions needed for the number of girls’ high schools within a 20-mile radius of a girl’s home to be a valid IV for girlhs. (v) Suppose that, when you estimate the reduced form for girlshs, you find that the coefficient on numghs (the number…

A researcher wanted to study the relationship between coffee drinking and heart problems. She interviewed all patients at several area hospitals and found that patients in the hospital for treatment of heart problems drank an average of 2.7 cups of coffee per day (Margin of error is 1.4 cups) while those patients being treated for other problems averaged only 1.4 cups of coffee per day (Margin of error is 0.8 cups). What conclusion can you draw about coffee as a cause of heart problems from this information?A) Coffee is bad for you.B) Coffee is good for you.C) Heart patients drink more coffee than other patients.D) None, because only patients in hospitals were interviewed.

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