How to derive the variance and estimates of ols, and which steps in the derivation process require assumptions, list them.b. Under the classic OLS model. Given the R∧2 as well as the adjusted R∧2, discuss this two R-squared differences, advantages and disadvantages and their different roles.

Write first-order model relating E(y) to four quantitative independent variables.

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.

(Yi, X1i, X2i) satisfy the assumptions of the attachment. You are interestedin β1, the causal effect of X1 on Y. Suppose that X1 and X2 are uncorrelated.You estimate β1 by regressing Y onto X1 (so that X2 is not included in theregression). Does this estimator suffer from omitted variable bias? Explain.

With Panel Data, if we assume that the individual effects vi are not correlated with the regressors Xit (i.e. E(vi|Xit) = 0), which one of the following statements is correct:     The Fixed Effects estimator is not consistent.     Both the OLS and the Random Effects estimators are not consistent.     The OLS estimator is not consistent, but the Random Effects estimator is consistent.     The OLS and the Random Effects estimator are consistent.     All of the above.     None of the above

19. The White test test statistic is n*R² ~x²(S-1). Where is the R² in the test statistic measured? A. The original econometric model when estimated using the White Robust Estimator B. The average from all the auxiliary regressions estimated with each explanatory variable as a function of the other explanatory variables C. The original econometric model before any test of heteroskedasticity has been performed D. The auxiliary regression of residuals as a function of the explanatory variables generating the heteroscedasticity 20. With annual times series data of 50 observations, how many observations are available to estimate the consumption econometric model CONt = Bo+ ß₁DISPYt + B₂CONt-1+ut A. 50 B. 47 C. 45 D. 49 21. Suppose the estimated simple linear demand equation for single-game tickets for a major football league is q=4.58-0.51p where q is the number of tickets sold measured in thousands and p is the dollar price of a ticket. Further assume that the point of the means_is…

Describe the recommended approach towards determining model specification.How does the R2 help in determining an appropriate model? Is theideal model the one with the highest R2? Should a regressor be included in the model if it increases the model R2?