Consider the following simple regression model y = B0 + B1x1 + u and z is an instrument for x. Suppose x and z are both positively correlated with u and Corr(z,x) > 0. Then, the asymptotic bias in the Iv estimator is less than that for OLS only if: O a. Corr(z,u)/ Corr(z,x) = Corr(x,u). O b. Corr(z,u)/ Corr(z,x)< Corr(x,u). O c. Corr(z,u)/ Corr(z,x) # Corr(x,u). O d. Corr(z,u)/ Corr(z,x) > Corr(x,u).
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- The following table provides values of the function f(x,y). However, because of potential; errors in measurement, the functional values may be slightly inaccurately. Using the statistical package included with a graphical calculator or spreadsheet and critical thinking skills, find the function f(x,y)=a+bx+cy that best estimate the table where a, b and c are integers. Hint: Do a linear regression on each column with the value of y fixed and then use these four regression equations to determine the coefficient c. x y 0 1 2 3 0 4.02 7.04 9.98 13.00 1 6.01 9.06 11.98 14.96 2 7.99 10.95 14.02 17.09 3 9.99 13.01 16.01 19.02For the following table of data. x 1 2 3 4 5 6 7 8 9 10 y 0 0.5 1 2 2.5 3 3 4 4.5 5 a. draw a scatterplot. b. calculate the correlation coefficient. c. calculate the least squares line and graph it on the scatterplot. d. predict the y value when x is 11.Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s pole vault height has fallen below the value predicted by the regression line in Example 2. This might have occurred because when the pole vault was a new event there was much room for improvement in vaulters’ performances, whereas now even the best training can produce only incremental advances. Let’s see whether concentrating on more recent results gives a better predictor of future records. (a) Use the data in Table 2 (page 176) to complete the table of winning pole vault heights shown in the margin. (Note that we are using x=0 to correspond to the year 1972, where this restricted data set begins.) (b) Find the regression line for the data in part ‚(a). (c) Plot the data and the regression line on the same axes. Does the regression line seem to provide a good model for the data? (d) What does the regression line predict as the winning pole vault height for the 2012 Olympics? Compare this predicted value to the actual 2012 winning height of 5.97 m, as described on page 177. Has this new regression line provided a better prediction than the line in Example 2?
- Which of the scatter diagrams below suggests a strong positive linear relationship between the x and y variables?Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is: kids; = Bo + B1educ; + uż. 1. What are the parameters in the model? 2. What kinds of factors are contained in u? Are these likely to be cor- related with level of education? 3. Will a simple regression analysis uncover the ceteris paribus effect of education on fertility? Explain.Suppose that average worker productivity at manufacturing firms (avgprod) depends on two factors, average hours of training (avgtrain) and average worker ability (avgabil): augprod = Bo+Biavgtrain + B2avgabil + u. Assume that this regression satisfies assumptions MLR 1-4. If grants have been given to firms whose workers have less than average ability so that avgtrain and avgabil are negatively correlated. Which is the following is true regarding the estimated coefficient on avgtrain in the following regression avgprod=Bo + B₁avgtrain + u. Ounblased blased upwards biased downwards undetermined.
- the following regression table where the dependent variable is the demandfor massage services in one city in the United States. Specifically, the dependent variable is the number of customers per hour (Models 1 and 2) or per day (Models 3 and 4). a) Explain why the coefficient for Population/1,000 in Model 2 is very different from the one in Model 4?Suppose that Y is normal and we have three explanatory unknowns which are also normal, and we have an independent random sample of 12 members of the population, where for each member, the value of Y as well as the values of the three explanatory unknowns were observed. The data is entered into a computer using linear regression software and the output summary tells us that R-square is 0.85, the linear model coefficient of the first explanatory unknown is 7 with standard error estimate 2.5, the coefficient for the second explanatory unknown is 11 with standard error 2, and the coefficient for the third explanatory unknown is 15 with standard error 4. The regression intercept is reported as 28. The sum of squares in regression (SSR) is reported as 85000 and the sum of squared errors (SSE) is 15000. From this information, what is SSE/SST? (a) .2 (b) .13 (c) NONE OF THE OTHERS (d) .15 (e) .25A forecaster used the regression equation Qt = a + bt+c₁D₁ + C2D2 + c3D3 and quarterly sales data for 2004/–2021/V (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D2 and D3 are dummy variables for quarters /, //, and ///. DEPENDENT VARIABLE: QT OBSERVATIONS: VARIABLE INTERCEPT T D1 D2 D3 R-SQUARE 64 0.8768 PARAMETER ESTIMATE 30.0 1.5 10.0 25.0 40.0 F-RATIO P-VALUE ON F 107.982 0.0001 STANDARD ERROR 12.80 0.70 3.00 7.20 15.80 T-RATIO 2.34 2.14 3.33 3.47 2.53 P-VALUE 0.0224 0.0362 0.0015 0.0010 0.0140 At the 5 percent level of significance, is there a statistically significant trend in sales?
- Suppose that Y is normal and we have three explanatory unknowns which are also normal, and we have an independent random sample of 21 members of the population, where for each member, the value of Y as well as the values of the three explanatory unknowns were observed. The data is entered into a computer using linear regression software and the output summary tells us that R-square is 0.9, the linear model coefficient of the first explanatory unknown is 7 with standard error estimate 2.5, the coefficient for the second explanatory unknown is 11 with standard error 2, and the coefficient for the third explanatory unknown is 15 with standard error 4. The regression intercept is reported as 28. The sum of squares in regression (SSR) is reported as 90000 and the sum of squared errors (SSE) is 10000. From this information, what is the number of degrees of freedom for the t-distribution used to compute critical values for hypothesis tests and confidence intervals for the individual model…Suppose that Y is normal and we have three explanatory unknowns which are also normal, and we have an independent random sample of 21 members of the population, where for each member, the value of Y as well as the values of the three explanatory unknowns were observed. The data is entered into a computer using linear regression software and the output summary tells us that R-square is 0.8, the linear model coefficient of the first explanatory unknown is 7 with standard error estimate 2.5, the coefficient for the second explanatory unknown is 11 with standard error 2, and the coefficient for the third explanatory unknown is 15 with standard error 4. The regression intercept is reported as 28. The sum of squares in regression (SSR) is reported as 80000 and the sum of squared errors is (SSE) 20000. From this information, what is the value of the hypothesis test statistic for evidence that the true value of the coefficient of the second explanatory unknown exceeds 5? (a) 4 (b) 3…4. Write a Julia function to calculate CV and GCV in the case of smoothing by local linear regression.