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Consider a Simple Linear Regression Model (SLRM) of the form y= a1+a2X+e where e ~ N(0,σ2)(Use the assumptions outlined in our class and available for review in the lecture notes posted on RamCT to answer the following questions)
(a) Identify the dependent variable in this model. Is it random? If so, how is it distributed (what is the mean and variance)? Is it observable or not?
(b) Identify the parameters of this model. Are they random? If so, how are they distributed (what is the mean and variance)? Is it observable or not?
(c) Identify the error term in this model. Is it random? If so, how is it distributed (what is the mean and variance)? Is it observable or not?
A firm's total revenue (TR) is provided by pq, where p is price and q is quantity sold. Assume the firm is initially selling 1000 units of its product at a
how to calculate equilibrium quantity and price
Consider the following equations designed to estimate a school's test scores (Test) and the school's dropout rate (Drop). Test i = B 0 + B 1 *Parent Ed i + B 2 *school quali
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demand for tea, Y, are assumed to be affected by income of students, X. A simple linear regres-sion analysis was performed on 20 observations and the results were: Independent vari
Peter's utility function is u(x, y) = x + 2y where x is the number of ounces of coffee and y is the quantity of sugar in grams. Let unit prices be given by P x = 6 cents, P
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Determine the four stationary points of the function Z= 2x 3 +y 3 -18x -12y +50 according to whether they define a maximum, minimum, or saddle point.
suppose only one professor teaches economics at your university, would you say that this prof is a monopolist who can exact any price from students in the form of readings assigned
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