Questions from General Economics

Q: The following equations were estimated using the data in LAWSCH85:

The following equations were estimated using the data in LAWSCH85: How can it be that the R-squared is smaller when the variable age is added to the equation?

Q: Using the data in GPA2 on 4,137 college students,

Using the data in GPA2 on 4,137 college students, the following equation was estimated by OLS: colgpa is measured on a four-point scale, hsperc is the percentile in the high school graduating class (...

Q: The data in WAGE2 on working men was used to estimate the

The data in WAGE2 on working men was used to estimate the following equation: where educ is years of schooling, sibs is number of siblings, meduc is mother’s years of schooling, and...

Q: The following model is a simplified version of the multiple regression model

The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other fact...

Q: The median starting salary for new law school graduates is determined by

The median starting salary for new law school graduates is determined by where LSAT is the median LSAT score for the graduating class, GPA is the median college GPA for the class, libvol is the numbe...

Q: In a study relating college grade point average to time spent in

In a study relating college grade point average to time spent in various activities, you distribute a survey to several students. The students are asked how many hours they spend each week in four act...

Q: Which of the following can cause OLS estimators to be biased?

Which of the following can cause OLS estimators to be biased? a. Heteroskedasticity. b. Omitting an important variable. c. A sample correlation coefficient of .95 between two independent variables...

Q: Suppose that average worker productivity at manufacturing firms (avgprod) depends

Suppose that average worker productivity at manufacturing firms (avgprod) depends on two factors, average hours of training (avgtrain) and average worker ability (avgabil): avgprod = 0 +  1avgtrain...

Q: The following equation describes the median housing price in a community in

The following equation describes the median housing price in a community in terms of amount of pollution (nox for nitrous oxide) and the average number of rooms in houses in the community (rooms): Lo...

Q: Suppose that you are interested in estimating the ceteris paribus relationship between

Suppose that you are interested in estimating the ceteris paribus relationship between y and x1. For this purpose, you can collect data on two control variables, x2 and x3. (For concreteness, you migh...