Omitted variables - Samenvattingen, Aantekeningen en Examens

Consider the following regression model: log(y) = β0 + β1x1 + β2x1 x3+ β3x3 + u, with βk≠0 (k=0,1,...,3). This model will suffer from functional form misspecification if _____. correct answers the interaction term x1x3 is omitted from the model Which of the following correctly identifies a difference between cross-sectional data and time series data? correct answers Time series data is based on temporal ordering, whereas cross-sectional data is not. A stochastic process refers to a:...

The principal way to detect omitted credits from books of account is through: o :## Trend analysis People commit financial statement fraud to: o :## Preserve personal status/control Which of the following is NOT the reason why senior management will overstate business statement? o :## Comply with debit covenants Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud? o :## Proper documentation, segregation of duties, independent checks...

When using a graphical solution procedure, the region bounded by the set of constraints is called what? correct answers The feasible region True or False: In an LP problem, at least one corner point must be an optimal solution if an optimal solution exists correct answers True An LP problem has a bounded feasible region. If this problem has an equality (=) constraint, then correct answers the feasible region must consist of line segment What would cause a change in the feasible region...

Write down multivariate linear regression model with 4 explanatory variable using general notations (Yi, β0, β1,β2, β3, β4, X1i, X2i X3i, X4i, and εi) and identify dependent variable, independent variables, constant term, coefficients, and error term. correct answers Constant b0 Independent b Dependent x Error 2 What is the main difference in the interpretation of the coefficients between single-explanatory variable regression model and multivariate regression model? correct answers ...

inversely correlated correct answers two variables that move in opposite directions. If one increases the other decreases; and if one decreases the other increases. A man with a CRC mutation that results in the synthesis of HSP110ΔE9 and a woman that does not carry this mutation in any of her tissues have a child. What is the percent chance that the child will inherit the CRC mutation? A.0% B.25% C.50% D.100% correct answers The answer to this question is A. According to the passage, H...

ECON 103 Final Exam Qu The overriding reason why households and societies face many decision is that - ANSWER-resources are scarce Melody decides to spend three hours working overtime rather than going to the park with her friends. She earns $20 per hour for overtime work. Her opportunity cost of working is - ANSWER-the enjoyment she would have received had she gone to the park If a tax is levied on the buyers of a product, then the demand curve will - ANSWER-shift down Which of the f...

Melody decides to spend three hours working overtime rather than going to the park with her friends. She earns $20 per hour for overtime work. Her opportunity cost of working is - ANSWER-the enjoyment she would have received had she gone to the park If a tax is levied on the buyers of a product, then the demand curve will - ANSWER-shift down Which of the following is not an example of a graph of a single variable a) a pie chart b) bar graph c) time-series graph d) a scatterplot - ANSW...

What happens if an irrelevant x is included in the regression model? correct answers As estimators (betas) are unbiased, the estimate of the coefficient will generally be around 0. This inclusion has an undesirable effect on the variance of the other estimators. What happens if a relevant variable is omitted? correct answers The estimators (betas) will be biased (over or under-estimated). Omitted variable bias! What is the difference between the Breusch-Pagan test and the White-test? cor...

Department of Economics Economics 1123 Harvard University Fall 2020 Midterm Exam 9:00 a.m., Wednesday October 24, 2018 PACKET 2 Solutions in Calibri 11 Part 1 – USE BLUE BOOK #1 (60 points) 1) Consider regressions (1) and (2). a) (5 points) Interpret the coefficient on license in regression (1), in which the dependent variable is wage. The mean wage for workers with a license is $2.76 higher than for those without a license. b) (5 points) Based on the evidence in the ...

What is revealed preference? correct answers Revealed preference: if people chose alternative A instead of B, it is because they preferred it. Their well being was higher with A than B. What is a utility/welfare function? correct answers A map of the enjoyment of goods into a measure of well being. If same utility, then indifferent. If more utility, then prefer that situation SHows which bundle of goods we prefer How is theta in the function determined? correct answers - Can be found by l...