Which of the conditions must a variable satisfy

Assignment Help Econometrics
Reference no: EM13499734

Consider the regression equation

2200_Regression equation.png

where x2, is exogenous and x3, is endogenous.

Which of the following conditions must a variable satisfy to be useful as an instrument for x3,?

You may select more than one condition. You will receive credit for each correct condition. You will lose marks for selecting an incorrect condition. The lowest mark that you can score for this question is zero.

56_Regression equation.png

Reference no: EM13499734

Questions Cloud

Explain how many moles of hci are present in the solution : A flask containing 5.00ml of 3M HCI solution requires 14.45 mL of 1.00M NaOH for titration. How many moles of HCI are present in the solution. The density of 3M HCI is1.05 g/mL
Find the speed of each asteroid after the collision : Two asteroids of equal mass collide with a glancing blow. Asteroid A, which was originally traveling at 40.0 m/s, is deflected 30.0? from its original direction, Find the speed of each asteroid after the collision
Enter the estimate of the intercept term : Enter the estimate of the intercept term of the first stage regression in the box and enter the 25LS estimate of t3L in the box below (rounded to 3 decimal places).
Evaluate the molarity of the solution : A solution is prepared by mixing 5.00 grams of compound Z (molar mass is 15.00 g/mol) in 100.0 mL of water. The density of the solution is 1.08 g/mL. Calculate the molarity of the solution.
Which of the conditions must a variable satisfy : You may select more than one condition. You will receive credit for each correct condition. You will lose marks for selecting an incorrect condition.
What was the ravens speed right after the collision : To protect their young in the nest, peregrine falcons will fly into birds of prey (such as ravens) at high speed. What was the raven's speed right after the collision
Develop a bsc for anthony orchard : You will now develop a BSC for Anthony's Orchard. The company has a number of strategic goals; measuring performance towards those goals will be critical to its sustained success.
Define a solution containing the following dissolved species : In a solution containing the following dissolved species, which would contribute positively to alkalinity. Explain
Compute the speed of a neutron : Many nuclear reactors use heavy water moderators in which elastic collisions occur between neutrons and deuterons of mass 2.0 u. What is the speed of a neutron, expressed as a fraction of its original speed

Reviews

Write a Review

Econometrics Questions & Answers

  What should be the production level if fixed costs rose

If software can only be produced in the quantities above, what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity is also listed above.

  How does operating objective change size of deadweight loss

Assume that a monopolist decides to maximize revenue instead of profit. How does this operating objective change the size of the deadweight loss If you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight los..

  Determine how much labor should the firm employ

Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.

  Compute point price elasticity of demand

Run OLS to estimate the inverse demand function(P = f(Q)), determine how much confidence do you have in this estimated equation? Apply algebra to then find the direct demand function

  Are the events mba and over age 35 mutually exclusive

Staff inc, a management consulting company, is surveying the personell of Acme Ltd. It determined that 35% of the analysts have an MBA and that 40% of all analysts are over age 35. Further, of those who have an MBA, 30% are over age 35.

  Calculate the amount of each semiannual payment

You are taking a $2000 loan. You will pay it back in four equal payments, paid every 6 months starting 3 years from now. The interest rate is 6% compounded semiannually. Calculate: (a) The effective interest rate, based on both semiannual and conti..

  Which could explain the increase in real gdp

Real GDP equaled $9,191 billion in 2000 and $9,215 billion in 2001. Both figures are adjusted for changes in the value of the dollar using a chained price index with a base year of 1996. Which could explain the increase in real GDP in 2001

  What should steven do to achieve optimal consumption bundle

Both are normal goods for him; each DVD costs $10 and each cup of iced tea costs $2. For each of the following situations, decide whether this is Steven's optimal consumption bundle. If not, what should Steven do to achieve his optimal consumption..

  Determine what is the income elasticity of demand

Suppose the market demand curve for a product is given by: Qd = 500 - 15P + 20I and the market supply schedule is: Qd = -25 + 10P + 10K. The initial values are I = 10, K = 5.what is the price elasticity of demand.

  What would affect decision in part a to purchase a machine

The Textile Workers of America is planning to strike for higher wages. Management predicts that if the strike is successful, the cost of labor will increase to $100 per day. If the strike is successful, how would this affect the decision in part a..

  Determine who has an absolute advantage in the home

Brad and Angelina are married with kids. Suppose Brad's at-home productivity as a parent is $25 and Angelina's is $40. a. Who has an absolute advantage in the home How do you know b. If brad works in the labor market, he can earn a wage of $500p..

  What is the cost per mile to own and operate the vehicle

Annual maintenance of the vehicle is estimated to cost $700 per year. The cost of recharging the batteries is estimates at $0.015 per mile. The salvage value of the batteries and the vehicle at the end of 12 years is estimated at $2000. Consider t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd