Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose that to explain the marginal effect of X on Y, the true model h Y =A + AX+u The OLS estimator for By based
Suppose that to explain the marginal effect of X on Y, the true model h Y =A + AX+u The OLS estimator for By based on this true model is dy Now, suppose a researcher Included another variable Z in the regressdoris arid obtained the OLS estimator dy and Ba We also know that & and 2 are correlated. Please select the correct statementis). Whether the variance of Dy is greater or less than the variance of dy depends on whether * Is positively correlated or negatively correlated with z. 1 8, is a blased estimator for By In the true model, and the direction of the blas depends on whether X Is positively correlated or negatively correlated with 2 CS, Is an unblased estimator for da in the true model The variance of Dy is greater than the variance of By; The variance of Be is less than the variance of 82:Suppose that the logarithm of Y is regressed on the logarithm of X, and the fitted OLS regression is log Y = 9 -6 log X. Suppose that we define a new regressor X"* = 10 X, and run another OLS regression of log Y on log X*. Select the correct statement(s). The new slope coefficient is -6. The new intercept is less than 9. The new intercept is greater than 9. The new slope coefficient is less than -6. The new intercept is 9. The new slope coefficient is greater than -6
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started