Explain regression model, Econometrics

In a study relating college grade point average to time spent in various activities, students are asked how many hours they spend each week in four activities: studying, sleeping, working, and leisure. Any activity is put into one of the four categories, so that for each student the sum of hours in the four activities must be 168. The regression model is given by

GPA = β0 + β1study + β2sleep + β3 work + β4 leisure +u

a) Does it make sense to hold sleep, work, and leisure fixed while changing study? Why or why not?

b) Explain why this model violates the assumption of no perfect collinearity.

c) How could you reformulate the model so that its parameters have a useful interpretation and it satisfies the no perfect collinearity assumption?

 

Posted Date: 3/6/2013 3:01:33 AM | Location : United States







Related Discussions:- Explain regression model, Assignment Help, Ask Question on Explain regression model, Get Answer, Expert's Help, Explain regression model Discussions

Write discussion on Explain regression model
Your posts are moderated
Related Questions
Process of least cost method and how to do a minimisation problem

what are the test for heteroscedasticity?

what factors dertemine underemployment/overemployment

What is the expected value and variance of y = 3x+2 knowing that E(X) = 8 and var(X) = 4.

what is role of education in economic development?

1. (a) Consider a perfectly competitive industry that produces a total output of 190 units in the long run. Suppose there are n identical firms in the market. Each firm then produc

A store is known for is bargains. The store has the habit of lowering the price of its bargains each day, to ensure that articles are sold fast. Assume that you spot an item on Wed

a) Explain what is calculated by a correlation coefficient. b) Why do economists commonly find regression a more useful tool than correlation? c) In a sample of 102 men the corre

My question is that when we use Impulse response function and how to use it. Is it used along with some other methodology. What is the meaning of graphs of IRF?

when is an econometric model said to be simple and naive