Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We have a data on exercise (in hrs/week) and health outcomes for 10,000 people over age 60. We regress health on exercise and find a

image text in transcribed
We have a data on exercise (in hrs/week) and health outcomes for 10,000 people over age 60. We regress health on exercise and find a strong positive relationship with a high R-squared, low standard errors, etc. (i.e. good regression diagnostics). We conclude that exercise improves health. But this positive result may arise because healthier people are able to exercise more. a) The good regression diagnostics tell us that reverse causality is not a problem. b) Good regression diagnostics are necessary but not sufficient to infer from this data that exercise improves health. C) If causality runs in both directions the coefficient on the exercise coefficient is likely to overstate the true effect of exercise on health. d) b) and c). e) All of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technology Ventures From Idea To Enterprise From Idea To Enterprise

Authors: Richard C Dorf, Byers

3rd Global Edition

9780071289214

More Books

Students also viewed these Economics questions