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A researcher is considering the following alternative regression models:
(a) Show that models (2) and (3) are restricted versions of model (1), stating the restrictions.
(b) Explain the implications for the disturbance terms in (1) and (2) if (3) is the correct specification and wt satisfies the Gauss-Markov conditions. What problems, if any, would be encountered if ordinary least squares were used to fit (1) and (2)?
Practice with the balance of payments: Current account = Capital account + Change in official reserves a. Current account = $10, Capital account = $15 a. What is the change in reserves b. Current account = $10, Change in reserves = $3. What is the ..
Consider the situation involving the creation of a routing loop in the network of Figure 4.15 when the A-E link goes down. List all sequences of table updates among A, B, and C, pertaining to destination E
Assume the economy is at equilibrium and output is at 20,000. Arightward shift in the supply curve shows that the economy canproduce 26,000 at the same price as before. Where will output be atthe new equilibrium
For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. At present, Iowa produces 20 million bushels of wheat and 120 million bushels of corn, while Nebraska produces 20 million bushels of corn and 120 million bushel..
England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 c..
How much training is enough?
The cost basis for the new equipment required is $200,000 (MACRS five-year property class). Increased annual revenues, in year zero dollars, are estimated to be $350,000. what is the maximum amount that your company can afford to spend
Explain the effect on supply and demand that the credit market crisis in the United States in 2008 had in the market for existing single-family homes. Assuming the demand for existing single-family homes is relatively inelastic.
What should the Fed do? Show how the Fed's action, combined with the decline in business confidence, affects the AS-AD diagram in the short run and the medium run.
what type of slope do you think an indifference curve would have? Why?
Suppose worker productivity increased at the rate of 1.9% per year. If the labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressures
Use the graph function to map this indifference curve.
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