12. Suppose you have been asked to estimate a simultaneous equation model (SEM) to jointly predict...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
12. Suppose you have been asked to estimate a simultaneous equation model (SEM) to jointly predict the Height and Weight of adults (i) aged (25-45), that is: Height = Bo+BGender; + B FatherHt; + B3 Ethnicity; + B Diet; + Weight + = Weight, B02+B Gender; + BFatherWt, + B32 Ethnicity; + B42 Diet; + 52 Height; +2i where: = Height; the subject's height in millimetres, = Weight; the subject's weight in grams, Gender; =1 if the subject is male and 0 otherwise, FatherHti = the height of the subject's father in millimetres, = Father Wt the weight of the subject's father in grams, Ethnicity: 1 if the subject is white (Caucasian), 0 otherwise, Diet: 1 if the subject eats a balanced diet, 0 otherwise. a) Can the Height equation be estimated satisfactorily using OLS? If not, why not? (5 marks) b) Are the Height and Weight equations identified? What does the term identification mean in this context? (5 marks) c) Describe the steps involved in an alternative estimation procedure that can be used to obtain the parameter estimates of the Height and Weight equations. (5 marks) d) What problems can occur is estimating identifiable SEMs, use this example to illustrate your answer. (5 marks) 12. Suppose you have been asked to estimate a simultaneous equation model (SEM) to jointly predict the Height and Weight of adults (i) aged (25-45), that is: Height = Bo+BGender; + B FatherHt; + B3 Ethnicity; + B Diet; + Weight + = Weight, B02+B Gender; + BFatherWt, + B32 Ethnicity; + B42 Diet; + 52 Height; +2i where: = Height; the subject's height in millimetres, = Weight; the subject's weight in grams, Gender; =1 if the subject is male and 0 otherwise, FatherHti = the height of the subject's father in millimetres, = Father Wt the weight of the subject's father in grams, Ethnicity: 1 if the subject is white (Caucasian), 0 otherwise, Diet: 1 if the subject eats a balanced diet, 0 otherwise. a) Can the Height equation be estimated satisfactorily using OLS? If not, why not? (5 marks) b) Are the Height and Weight equations identified? What does the term identification mean in this context? (5 marks) c) Describe the steps involved in an alternative estimation procedure that can be used to obtain the parameter estimates of the Height and Weight equations. (5 marks) d) What problems can occur is estimating identifiable SEMs, use this example to illustrate your answer. (5 marks)
Expert Answer:
Answer rating: 100% (QA)
a The Height equation in the simultaneous equation model SEM as described above cannot be estimated satisfactorily using Ordinary Least Squares OLS re... View the full answer
Related Book For
Statistics The Exploration & Analysis Of Data
ISBN: 9780840058010
7th Edition
Authors: Roxy Peck, Jay L. Devore
Posted Date:
Students also viewed these economics questions
-
If the required rate is 15%, the risk premium is 11, and beta is 1 what is the risk free rate rate of return? 26% 4% 5% 4%
-
re Regular Languages and Finite Automata (a) Let L be the set of all strings over the alphabet {a, b} that end in a and do not contain the substring bb. Describe a deterministic finite automaton...
-
A discussion of digital ethics appears in the article Academic Cheating, Aided by Cell Phones or Web, Shown to be Common (Los Angeles Times, June 17, 2009). One question posed in the article is: What...
-
Which sentence below most strongly emphasizes the importance of the decision? (5 points) Over the next year, the direction of the company depends on the quick decision we must make. The direction of...
-
Explain which segmentation variable would be most important to marketers of the following products vitamins credit cards coffee.
-
Douglas Ltd supplies the following information after the first year of trading: Additional information The directors wish to transfer 50,000 to general reserve and recommend a final dividend of...
-
Brianna Garcia is contemplating the purchase of an ice cream vending machine, which would be used to sell ice cream to customers for $2 each. The following estimates are available: Required:...
-
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2013. Accounting assistants furnish the data shown below. An accounting assistant has prepared the detailed manufacturing...
-
Management Risk. Il. Identify the internal control weakness or factors that increase the risk of the Misstatement (18 points) Frauds or Errors Internal Control Weakness or Factors that Increase the...
-
Alexander Smith and his wife Allison are married and file a joint tax return for 2019. The Smiths live at 1234 Buena Vista Drive, Orlando, FL 32830. Alexander is a commuter airline pilot but took 6...
-
Question 171 point) LG and Samsung are both releasing a new smartphone at the same time. Each company is fairly well known, and they are both deciding between pursuing two advertising strategies....
-
For this week's discussion, review the information in the following articles links: a. Business Analytics: What it is & Why It's Important...
-
Question 1 A university plans to build a new computer lab for its students for data analysis and simulation modelling. It has determined the number of computers needed each month for the next 12...
-
least ONE naar by Sunday 11:59 nm. All peer responses must be between Vat would be an example of a legal issue in e-communication? How can you avoid legal issues involving e-communication? Prompt 2-...
-
LOOP IN PYTHON TASK: Harry Potter's Lines Make Python application that asks the user for the name of the professor the lines are for, the line to address and the number of times to print this line to...
-
you will be required to perform a number of tasks to assess your skills to prepare and produce a variety of basic cookery methods to prepare dishes. You will be required to prepare, plate and present...
-
please give the analysis on the Classification based on various cost .brifley describe on these classifications.
-
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
-
In a national survey of 2013 adults, 1590 responded that lack of respect and courtesy in American society is a serious problem, and 1283 indicated that they believe that rudeness is a more serious...
-
The following data on x = score on a measure of test anxiety and y = exam score for a sample of n = 9 students are consistent with summary quantities given in the paper Effects of Humor on Test...
-
The authors of the paper Deception and Design: The Impact of Communication Technology on Lying Behavior (Proceedings of Computer Human Interaction [2004]) asked 30 students in an upper division...
-
An anonymous e-mail is sent to an internal auditor that there is fraud in the inventory/ warehousing cycle. Suggest some appropriate audit steps.
-
Go to the Internet and listen to the song by Johnny Cash called "One Piece at a Time." Outline some lessons from the song.
-
During a brainstorming session, a suggestion is made that the most likelihood of fraud in a particular division is in the area of acquisition and payment cycle. Outline five audit steps to help find...
Study smarter with the SolutionInn App