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Explain when fixed effects, random effects or pooled OLS models are usually used.
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- Question 19 Lot's say you run a simulation and figure out that your sample bs one of the likely sampies that could have come from a DGP of 0. What would that mean? • A That is a good sign. Our model is good and probably explains a lot of variation. • B This is a bad sign for our model because a DGP of 0 means there is no relationship between the explanatory and outcome variable. • C This does not mean anything for our model. We have to run supernova to find out about how good our model is. • Dit depends on what our b Type Markdown and LaTeX: a Question 20 14 MacBook ProThis is model question. I need100% accurate answer. Please review it.A student prepared the following spreadsheet model to calculate the final price of clothing items which are sold at a discount. To be complete, the student included a calculation of sales tax in the final price, given the original price (180), discount (0.2), and sales tax rate (0.09) shown below. A B 1 2 Original Price 180 3 Discount(%) 0.2 4 Discount ($) = B2 × B3 5 Net Price = B2 − B4 6 Sales Tax(%) 0.09 7 Sales Tax($) = ROUND(B5 × B6,2) 8 Final Price = ROUND(B5 + B7,2) Determine what values the spreadsheet should display. (Round your answer to 2 decimal places.)
- A(n) variable is calculated from within the model. A(n). endogenous; endogenous endogenous; exogenous exogenous; endogenous exogenous; exogenous none of the above variable can never be taken as given.Which of the following variables is considered random or probabilistic? O Micky Mantle's lifetime batting average O last week's sales data O future interest rates O historical stock pricesStyles 6. The following two regression models are Probit and Logit respectively: Pr(Y=1|X)=(Bo+Bi xXr+Bzx X2) Pr(Y=1|X)=F(Bu + B₁ × Xs + B₂ × X2) (a) what functions do and F represent? (b) How do Probit, and Logit ensure that the predicted probabilities are always between 0 and 1? (c) Sketch a graph of the Y= $(Z) function. (Z on the horizontal axis, Y on the vertical axis) (d) What estimation method is used to estimate the coefficients in a Probit/Logit model? (e) What are the two measures of fit for models with binary dependent variables? Focus 88 B E
- What is event modeling? Multiple Choice The event model adjusts data for each of the events identified to distort the trend and seasonal patterns of the time series. The event model adds a growth factor to the moving average as a way of adjusting for the event. The event model adds a smoothing constant for the events identified as important in the historical data. The event model initializes events so they can be selected to initialize or warm up the model.Question 2. Which of the following models can be estimated (following a suitable transformation if necessary) using ordinary least squares (OLS), where x, y, z are variables and a, B, y are parameters to be estimated? a) y, = e¤x,°e b) y, = a + Byx, + ɛ, c) In(y,)= a + B In(x,)+ɛ, d) y, = a +ßx;z, + ɛ;The Results below show the output of the following model: ?=?0+?1?1+?2?2+? Coefficient St. Error t-ratio Intercept 10.492 0.6655 15.77 ?1 0.0154 0.1889 0.08 ?2 0.1353 0.1889 0.72 Observations 100 ?2 0.985 Correlation matrix: X1 X2 X1 1 X2 0.950 1 Instructions: a. The above results show that the model has the problem of multicollinearity, what are the indicators of multicollinearity that can be identified from these results? b. What are the solutions to rectify multicollinearity?
- (Econmetrics) Q.1 How can you test for general misspecification of model if it would have only (any of) two independent variables?what are the key features , Strength and limitation of following model? and when which model should be used? Ordinary Least Squares Logit regression model Probit regression modelExlplain Linear Conditionally Unbiased Estimators and the Gauss–Markov Theorem with its limitations?