1 True / False f Uncertain Instructions: Decide whether each statement is true, false, or uncertain, and explain why. Each question is worth 5 points l for the correct true,'false_fm1certain answer and 1 points for the explanation. Explanations may take the form of words, graphs, math, or some combination of the three. 1. There is a paper that looks at people's decision about whether to renew their contracts for different kinds of dangerous jobs when they are oil'ered different bonus amounts for renewing. The jobs involve different probabilities of dying. The authors use the relationship between the bonus amomits people accept and the probability of death in the job they are oifered to calculate how much people value their own lives, on average. This kind of comparison meets the assumptions for hedonic analysis and can help policymakers conduct benetcost analyses for policies that may save lives. 2. A study uses a research design that is consistent with all the assumptions miderlying reg'ession. The dependent variable is number of thefts in a neighborhood, and the key independent variable is the number of houses with security cameras. The results are that ii = 5 with a standard error of 3.?5. We are justied in concluding that, on average, installing l security cameras in a neighborhood would decrease thefts in that neighborhood by EDD offenses. 3. A researcher is interested in estimating the effect of increased police visibility on crime. Based on newspaper reports, she has noticed that as mayors get closer to their re-election dates, they often adjust policy to be \"tougher on crime,\" i.e., to make police more visible in their cities. She would be justied in using proximity to the next mayoral election as an instrumental variable for the visibility of police. 4. Suppose a policymaker is considering either a l percent increase in the size of the police force or a 20 percent increase in the length of sentences. Based on the readings we covered in lecture, the policymaker can expect to get at least 3 times as much violentcrime reduction from the change in police as she could get total crime reduction from the change in sentences