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Run a regression of testscr on str and avginc, where testscr and str are as above, and avginc is a measure of the average household income in the school district.
a. What is the correlation between str and avginc. Does this correlation suggest the model specification suffers from serious multicolinearity?
b. What is the estimated effect of str on testscr?
c. Now create a scatterplot of testscr on avginc, and use OLS to fit a straight line to the data. Do you think this simple regression equation suffers from specification bias? If so, how?
d. What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling variability? In other words, what is the probability that the R2 is actually zero? Explain how one conducts an F test to test such a hypothesis.
At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year to start his own business Sound Devices, Inc. The new company builds, installs and maintains custom audio equipment for businesses that require hig..
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.
A government researcher examines the factors that influence a city's crime rate. For 41 cities, she collects the crime rate (crimes per 100,000 residents), the poverty rate (in %), the median income (in $1,000s), the percent of residents younger than..
which of the following statements regarding government spending is true?select onea. government spending in the
What happens to equilibrium output and the equilibrium interest rate in the short-run, and equilibrium output and theequilibrium price level in the long-run.
the government stimulus package implemented during the recession of 2007-09 was needed since built-in stabilizers are
a corporation enters into a five-year interest rate swap with a swap bank in which it agrees to pay the swap bank a
Compare and contrast how the marketing and economic approaches deal with this problem. 2 pages,Due 6pm EST. on August 09 2012.
A major employer has just added health insurance coverage for its employees. Consequently, 5,000 of your patients will pay a $30 copayment rather than the list price of $100 per visit. These patients average 2.2 visits per year.
The long-run supply curve for a good is a horizontal line at a price $3 per unit of the good. The demand curve for the good is QD = 50-2P. then what is the equilibrium output of the good.
Total liabilities and stockholders' equity $200,000 $210,000 Instructions (a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base. (b) Prepare a vertical analysis of the balance sheet data for Conard Co..
think of a business firm you recently visited such as walmart home depot red lobster barnes amp noble mcdonalds etc..
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