For question 5 refer to the data set fireLiability on canvas. Use this data set to estimate a model of fire liability (Y) as a function of forested land in the state (FYNFS, FYIND, FYNIP), population education (EDU), per capita income (INC) and the number of state legislators in the state (SEAT). (75 points) a. Estimate this model using OLS. Discuss your findings. ( 15 points) b. OLS may not be the optimal to use with this data set. Which estimation technique is most appropriate for this data set? Why is that the case? Be thorough in your explanation of the theory behind why the technique you chose is better than OLS in this situation ( 35 points) c. Estimate this model using the technique you discussed in part (b). What did you find? How do your results differ from part (a) ( 25 points) 6. For Question 6 refer to data set openness on canvas. Use this data set to estimate a model for the inflation rate (inf) as a function of the imports of a country as a percent of GDP (open) and the countries logged per capita income (lpcinc). ( 75 points) a. Estimate this model using OLS. Discuss your findings. ( 15 points) b. OLS may not be the optimal to use with this data set. Which estimation technique is most appropriate for this data set? Why is that the case? Be thorough in your explanation of the theory behind why the technique you chose is better than OLS in this situation ( 35 points) c. Estimate this model using the technique you discussed in part (b). What did you find? How do your results differ from part (a) ( 25 points). For question 5 refer to the data set fireLiability on canvas. Use this data set to estimate a model of fire liability (Y) as a function of forested land in the state (FYNFS, FYIND, FYNIP), population education (EDU), per capita income (INC) and the number of state legislators in the state (SEAT). (75 points) a. Estimate this model using OLS. Discuss your findings. ( 15 points) b. OLS may not be the optimal to use with this data set. Which estimation technique is most appropriate for this data set? Why is that the case? Be thorough in your explanation of the theory behind why the technique you chose is better than OLS in this situation ( 35 points) c. Estimate this model using the technique you discussed in part (b). What did you find? How do your results differ from part (a) ( 25 points) 6. For Question 6 refer to data set openness on canvas. Use this data set to estimate a model for the inflation rate (inf) as a function of the imports of a country as a percent of GDP (open) and the countries logged per capita income (lpcinc). ( 75 points) a. Estimate this model using OLS. Discuss your findings. ( 15 points) b. OLS may not be the optimal to use with this data set. Which estimation technique is most appropriate for this data set? Why is that the case? Be thorough in your explanation of the theory behind why the technique you chose is better than OLS in this situation ( 35 points) c. Estimate this model using the technique you discussed in part (b). What did you find? How do your results differ from part (a) ( 25 points)
