Explain regression model, Econometrics

Assignment Help:

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?

 


Related Discussions:- Explain regression model

Effects in financial data, Problem: a) In what circumstances would you ...

Problem: a) In what circumstances would you apply switching models? b) Using dummy variables for seasonality show how you would test for January effects in financial data?

Cournot duopoly model, i) Briefly distinguish between the Cournot duopoly m...

i) Briefly distinguish between the Cournot duopoly model and that of Stackelberg.     ii) Suppose the  inverse  market demand curve for  a telecommunications equipment is P = 10

Concept of limit pricing theory, what meaning of limit pricing theory and i...

what meaning of limit pricing theory and its importance in industrial economics?

Profit Electron, Calculate the incremental profit Electron Control would ea...

Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.

E-views, The following table gives data on the Consumer Price Index (CPI) a...

The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P) company''s index of 500 common stock prices. Year CPI Index S&P 500 Index 1978 65.2 9

Question about service, do you write assignment or just help write assignme...

do you write assignment or just help write assignments

Determine the stress distributions across the cylinder, A thick walled cyli...

A thick walled cylinder has internal and external diameters of 120 mm and 420 mm respectively. It is made from a ductile elastic material of your choice and is used to contain hot

Write Your Message!

Captcha
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