Exam (elaborations)
BUAN 6312 Exam 2 Questions with Correct Answers.
- Course
- Institution
BUAN 6312 Exam 2 Questions with Correct Answers.
[Show more]
Content preview
BUAN 6312 Exam 2 Questions with Correct AnswersEndogeniety Correct Answer-Correlation between explanatory variable
and error term
Endogeniety causes the least squares estimator to be what? Correct
Answer-Biased and inconsistent
When what is correlated with the explanatory variable, the regression
error will be correlated with the explanatory variable? Correct Answer-
Omitted variable
Instrumental variables have no effect on what? Correct Answer-Y
Instrumental variables cannot be correlated with ___ but must be
correlated with___ Correct Answer-e,x
Instrumental variables are biased but what? Correct Answer-Consistent
Why are instrumental variable estimators less efficient than LSE?
Correct Answer-Variance of IV estimator is always larger than LSE
Instrumental variables need an F-stat of at least what? Correct Answer-
10
, The number of what should be greater than or equal to the number of
endogenous variables? Correct Answer-exogenous instruments
If failing to reject Ho in a Hausman test for IVs, LSE and IVE are what?
Correct Answer-consistent
If failing to reject Ho in a Hausman test for IVs, which estimator should
be used? Correct Answer-LSE
What distribution does the Hausman test use? Correct Answer-Chi
square
Which model captures behavioral differences/individual heterogeneity in
the intercept? Correct Answer-fixed effects
In which model are intercepts and slopes constant across individuals?
Correct Answer-random effects
For which model can time invariant characteristics NOT be correlated
with regressors? Correct Answer-random effects
For which model can Ui be correlated with regressors without bias?
Correct Answer-fixed effects
"Within" estimation produces incorrect what? Correct Answer-standard
errors
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cracker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now