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To estimate the partial effect of X2 on y while X3 is kept constant, we need to estimate a regression model like y = β1+β2x2+β3x3+u. Some students find this counter intuitive: if we're keeping x3 constant, why should it be in our model at all? Explain intuitively why this is the right thing to do.
Explain what will happen to unemployment using both classical and Keynesian reasoning.
Beatrice has calculated the fixed costs for the Café are $18,000 per month and each meal costs $4.50. Will profits go up or down as a result of the price cut? By How much?
A $17,000 car is purchased for $3,200 down with the remainderto be financed ovr 36 months at 10%. Determine:(a) Monthly payments (b) Total interest (dollars) that would be paid in 36months
Discuss how new discoveries in genetics are contributing to our understanding of the HIV virus & how some folks exposed to HIV have been able to escape developing AIDS.
Company A just paid a $3.00 dividend per share. The dividend is expected to grow at a 4% rate indefinitely. The beta of the stock of Company A is 1.5. The market risk premium is 8% and the risk-free rate is 3%. (a) What is the expected return on t..
Test the intercept estimate for significance at the 95 percent confidence level. If Proposition 103 has no impact on auto insurance premiums in any given county, what percent of voters do you expect will vote for the proposition
data from the land of milk and honey: year price of milk quantity of milk price of honey quantity of honey 2010 $1 100 quarts $2 50 quarts 2011 $1 200 quarts $2 100 quarts
GKX Industries expects sales of its hydraulic seals (in inches and metric sizes) to increase according to the cash flow sequences $70+4k, where k is in years and cash flow is in $1000. What is the amount of the cash flow in year 3
Economy A has an inflation rate of 6% in 1990. This rate has stayedthe same during the previous five years. Economy B has an inflationrate of 4% in 1990. During the previous five years, inflation hasbeen as high as 10%
In its most recent financial statements, Newhouse Inc. reported $50 million of net Statement of income and $810 million of retained earnings. The previous year, its balance related earnings sheet showed $780 million of retained earnings.
Historical records show that 70 structures with 800 square feet of floor space and 8 foot ceilings were produced in 1999.Then the materials cost for each structure was $25,000 and the cost capacity factor is 0.65. Cost index values for 1999 and 20..
When Iraq invaded Kuwait in 1990, the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel - an increase of almost 42 percent. Your boss is puzzled, because the price increase actually occurred
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