Econometrics || A+ Guaranteed.

panel data (longitudinal data) correct answers data for multiple entities in which each entity is observed at two or more time periods cross-sectional data correct answers Cross sectional data means that we have data from many units, at one point in time. time series data correct answers Time ...

Definition of Econometrics correct answers Econometrics is the branch of economics that develops and uses statistical methods for estimating economic relationships Why is econometrics its own discipline seperate from statistics correct answers -It focuses on problems inherent in analyzing data ge...

If the data are missing at random, then the missing data do not cause any statistical problems. a. True b. False correct answers True A multiple regression model suffers from functional form misspecification when it does not properly account for the relationship between the dependent and ...

Variance vs Covariance vs Correlation correct answers The variance refers to the spread of the data set — how far apart the numbers are in relation to the mean, for instance. Var(x) =Sum of squared errors (deviations) / Total number of observations Covariance is a measure of how changes in ...

2a) Let income denote the person's income and age denote the persons age. We would like to run an OLS regression on the equation BMI=B0+B1fast+B2income+B3age+U. Write down all the assumptions that guarantee that the OLS estimators of the coefficients of this equation are unbiased correct answers 1)...

The cumulative probability distribution shows the probability: correct answers that a random variable is less than or equal to a particular value. The correlation between X and Y: correct answers can be calculated by dividing the covariances between X and Yby the product of the two standard devia...

Regression analysis correct answers measures the impact of a set of variables on another variable. Largely concerned with ESTIMATING/predicting the population mean or average value of the dependent variable based on the known values of the explanatory variable There are two Variables X and Y, ...

regression discontinuity: what assumptions are necessary correct answers What assumptions are necessary? o All variables except treatment status are smooth in the running variable in a neighborhood of the threshold. o No sorting at the threshold: agents cannot fine tune the level of their runn...

Write down multivariate linear regression model with 4 explanatory variable using general notations (Yi, β0, β1,β2, β3, β4, X1i, X2i X3i, X4i, and εi) and identify dependent variable, independent variables, constant term, coefficients, and error term. correct answers Constant b0 Independent b...

Major uses of econometrics correct answers Forecasting: interest rates, stock prices Policy evaluation: effect of a minimum wage Testing economic policy: do consumers behave as our theories predict Estimating (magnitudes of) economic relationships (PED, MPC, returns to education) Why Econometr...

Causal Effect correct answers A ceteris paribus change in one variable that has an effect on another variable Ceteris Paribus correct answers all other relevant factors are held fixed Cross-sectional Data Set correct answers A data set collected by a sampling population at a given point in tim...

Nonexperimental data correct answers data that has not been obtained through controlled experiments on individuals, firms, or segments of the economy observational data correct answers Nonexperimental data; emphasize the fact that the researcher is a passive collector of the data. Experimental...

Analyzing the behavior of unemployment rates across US states in March of 2006 is an example of using: - panel data - cross-sectional data - time series data correct answers cross-sectional data Analyzing the effect of minimum wage changes on teenage employment across the 48 contiguous US stat...

to standardize a variable correct answers subtract its mean and divide by standard deviation In a randomized controlled experiment correct answers there is a control group and a treatment group. The most frequently used experimental or observational data in econometrics are of the following ty...