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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?
Define McKinsey & Company's present "core competence" in terms used by Hamel & Prahalad and state how it fits with McKinsey's longer term vision. Answer) McKinsey an
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A chance sample of visitors to a National Park was interviewed regarding their impressions of the Park. Of 200 interviewees, 120 said that they would probably make a return visit
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Problem: a) Using a financial or economics theory, determine a simultaneous structural model and a recursive model, explaining each variable used in the models. b) Using
energy consumption and economic growth
how can the factors of production be occupationally mobile
As in the model solved initially, the following is the LP model Maximize Z = $42.13*(x 11 + x 12 + x 13 + x 14 ) + $38.47*(x 21 + x 22 + x 23 + x 24 ) + $27.87*(x 31 + x
Gruen&Pagan(1999) "The Phillisp Curve in Australia" identified that NAIRU is non-constant over the period. Provide an econometrics evaluation of the claim that NAIRU is non constan
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