which of the following will cause ordinary least square (ols) estimates of a simple regression model, y = β0 + β1x + u to be biased?

Answers

Answer 1

Answer:

There are several factors that can cause ordinary least square (OLS) estimates of a simple regression model, y = β0 + β1x + u, to be biased:

1. Non-random sampling: If the sample used in the regression analysis is not random, then the OLS estimates may be biased. For example, if the sample only includes people who live in a specific area or only those who are a certain age, then the estimates will not be representative of the population as a whole.

2. Endogeneity: If one of the independent variables in the model is correlated with the error term, then the OLS estimates will be biased. This occurs when there is a omitted variable that is related to both the dependent variable and one of the independent variables.

3. Multicollinearity: When two or more independent variables in the model are highly correlated with each other, it can cause the OLS estimates to be biased. This occurs because the estimates become unstable when the variables are highly correlated.

4. Non-constant variance: If the variance of the errors in the model is not constant, then the OLS estimates will be biased. This occurs when the errors are not homoscedastic.

5. Specification error: If the wrong variables are included or excluded from the model, then the OLS estimates will be biased. This occurs when the model is misspecified.


Related Questions

If a 123 pound man can have 1213 mg of a medicine in a day, how much can a 102 pound woman have?

(round answer to one decimal place)

Answers

The woman weighing 123 pound can take 1005.9 mg of medicine

What is an equation?

An equation is an expression that shows the relationship between two or more numbers and variables using mathematical operations. An equation can be linear, quadratic, cubic and so on, depending on the degree of the variable.

If a 123 pound man can have 1213 mg of a medicine in a day. Hence:

Unit rate = 1213 mg / 123 pound = (1213/123) mg per pound

For a 102 pound:

Amount of medicine = (1213/123) mg per pound * 102 pound = 1005.9 mg

The woman can take 1005.9 mg of medicine

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Cual es el producto de x(x+1)?

Answers

Answer:

x² + x

Step-by-step explanation:

x(x+1) →

[a(b + c) = ab + ac]

x (x) + x (1) →

[x • x = x²] + [x • 1 = x] →

x² + x

I need help with this. Please explain
I=PRT
P=5,600
R=0.2
T=4

Answers

Step-by-step explanation:

The formula "I=PRT" is the simple interest formula, where:

I = interest

P = principle (the initial amount of money)

R = interest rate (as a decimal)

T = time (in years)

Given the values of P, R, and T:

P = 5,600

R = 0.2

T = 4

We can plug these values into the formula to find the interest:

I = P * R * T = 5,600 * 0.2 * 4 = 4,480

So, the interest earned on a principle of $5,600 at an interest rate of 0.2 (or 20%) for 4 years would be $4,480.

Find the volume of each solid. Round to the nearest tenth if necessary. There’s to questions so there is two answers. 1=? 2=?

Answers

The volume of the sphere with radius 5 yd rounded to the nearest tenth is 523.3 yd³.

What is the volume of the sphere?

The volume of a sphere is expressed as;

V = 4/3 × π × r³

Where r is radius and constant pi π = 3.14.

Given the data in the question;

Radius r = 5 ydVolume V = ?

To find the volume of the sphere, plug the given value into the above formula and simplify.

V = 4/3 × π × r³

V = 4/3 × 3.14 × ( 5 yd )³

V = 4/3 × 3.14 × 125 yd³

V = 523.3 yd³

Therefore, the volume of the sphere is 523.3 yd³.

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You have decided to build your shelter close enough to the coastline to be able to fish but far enough away to not bear the brunt of the bitter cold winds. After watching previous seasons of the show, you decide that 50 meters is a good distance away from the coastline. To estimate, you will convert meters to feet (you do not have a tape measure). How many feet is this?

Answers

50 meters in feet is 164.042 feet

How to convert from meters to feet

In order to convert meters to feet we would have to cross multiply

That is. one meter is given as 3.28084 feet

We are to convert 50 meters to feet, hence we would have:

If 1 meter = 3.28084

50 meters = ?

When we cross multiply, we would have

? = 3.28084 * 50 meters

? = 164.042

Hence the amount of 50 meters in feet is given as 164.042 feet

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Edudig Digger
£35950
Samir buys this digger and expects to use it for 1250 hours each year.
The digger will decrease in value at a yearly rate of 18% of its value at the end of the previous
year.
Use this information to calculate the decrease in value of Samir's digger when it has been
used for 10000 hours.

Answers

Answer: To calculate the decrease in value of Samir's digger after 10000 hours, we need to determine its value at the end of each year, taking into account the yearly depreciation of 18%.

Here's the calculation for the first year:

Value at the end of Year 1 = £35950 - (£35950 * 18%) = £29576

And for the second year:

Value at the end of Year 2 = £29576 - (£29576 * 18%) = £24480.48

And so on, until we reach 10000 hours. To determine the exact value after 10000 hours, we would need to perform the calculation for each year until we reach the total number of hours used. However, this calculation would involve multiple steps and can become quite complex. A simpler way to estimate the decrease in value would be to use the concept of present value.

Using Pythagorean Theorem, Find the area of the right triangle.
Be sure to include the correct unit in your answer.
20 m
25 m

Answers

Answer:

Step-by-step explanation:

How can I find the perimeter of rectangle

Answers

Answer:

19

Step-by-step explanation:

top = bottom so 4x-4y = 3x+5y so x = 9y

left = right so 2-2y = x-3y so x= y+2

so 9y = y+2

8y = 2

y= 0.25

x=2.25

so just add them all up

2*(4x-4y) + 2*(2-2y )

= 8*(x-y)+4*(1-y)

=16+4*0.75

=19

Five rectangular picture frames are shown below.

Which 2 of the picture frames are similar shapes?

Answers

Answer:

A and E

Step-by-step explanation:

Ratio of A=20/30=2/3

Ratio of B=28/50=14/25

Ratio of C=35/50=7/10

Ratio of D=14/26=7/13

Ratio of E=32/48=2/3

therefore A and E are similar shapes

Stefany's salary at her company, Horizon Logistics starts at a base salary of $60,000. The table below shows her salary g(x) after x years. Write an explicit rule for the g(x).
help lssssa​

Answers

The explicit rule for the g(x) is g(x) = 54000 + 6000x

How to determine the explicit rule

The definition of the function is given as

Initial = 60000

And the table of values

The definitions from the table imply that we simply add 6000 to the previous term to get the current term

This means that

Common difference, d = 6000

The sequence is then represented as

f(x) = a + (x - 1)d

So, we have

f(x) = 60000 + (x - 1) * 6000

Evaluate

f(x) = 54000 + 6000x

Hence, the equation is f(x) = 54000 + 6000x

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Please help me I’m stuck-

Answers

I think it’s yes I might be wrong tho

Answer:

No

Step-by-step explanation:

to be right angled triangle,

h^2=p^2+b^2

,15^2=12^2+8^2

,225=144+64

,225=208

Since 225 is not equal to 208

It is not a right angled triangle

Sheridan Industries had sales in 2021 of $7,752,000 and gross profit of $1,254,000. Management is considering two alternative budget plans to increase its gross profit in 2022.

Answers

The cost of sales for Sheridan Industries, given the gross profit and the sales, is $ 6, 498, 000

How to find the cost of sales ?

The cost of sales refers to the amount that the company invested to be able to make the sales they did. This includes the cost of purchases of goods which were then sold ( or their cost of manufacturing ).

The cost of sales to Sheridan Industries can be found by the formula :

= Sales - Gross profit

The cost of sales is therefore :

= 7, 752, 000 - 1, 254, 000

= $ 6, 498, 000

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The full question is:

Sheridan Industries had sales in 2021 of $7,752,000 and gross profit of $1,254,000. Management is considering two alternative budget plans to increase its gross profit in 2022. To do this this, management first needs to determine its cost of sales. Find the cost of sales for 2021.

Solve for 4|u-2| +6 < 42

Answers

Pls let me know if this is right -10ltxlt14

Translate this sentence into an equation. 171 is the product of 9 and Rhonda’s height. Use the variable R to represent Rhonda’s height

Answers

Answer:

171=9R

Hope this helped! :)

Answer:Rx9=171

Step-by-step explanation:

A bean plant measures 1.5 cm and grows 0.1 cm per day. A tomato plant of 0.85 cm grows steadily too. How much can it grow each day knowing that it will have the same height as the bean plant in no more than 10 days?

Answers

Answer:

Let's call the growth rate of the tomato plant "g". We know that the height difference between the tomato plant and the bean plant decreases by 0.1 cm per day, so we can write the following equation:

1.5 - 0.85 - (10 * g) = 0

Solving for g:

g = (1.5 - 0.85) / 10 = 0.065 cm/day

So the tomato plant grows at a rate of 0.065 cm per day, and will reach the height of the bean plant in no more than 10 days.

The tomato plant will grow 0.165 cm per day.

Solution:

Given,

Height of bean plant = 1.5 cm

Height of tomato plant = 0.85 cm

The growth rate of bean plant = 0.1 cm/ day

The bean plant will grow 1.5 + (0.1* 10) in 10 days = 2.5 cm

So, the tomato plant will have to grow (2.5 - 0.85) cm in 10 days = 1.65 cm

Since, the tomato plant will grow steadily,

Hence, 1.65/ 10 = 0.165

Therefore, the tomato plant will grow at a rate of 0.165 cm per day

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How many solutions does this system have
X+3y=0
Y=-8+2

Answers

Answer: x=18 and y=-6

Step-by-step explanation:

y=-6; x+3y=0    

HELP ASAP.Next time, the rabbit from the previous problem started at 10 where on the number line can he be after the same three jumps?

This is the previous problem: A rabbit started at point 0 and made 3 jumps a jump of 4 units then a jump of 2 units and then a jump of 1 unit we do not know the direction of either jump where on the line could the rabbit be.

Answers

Since the rabbit from the previous problem started at 10, it would be at 17 units on the number line after the same three jumps.

What is a number line?

In Mathematics, a number line is a type of graph with a graduated straight line which comprises both positive and negative numerical values that are placed at equal intervals along its length.

From the previous problem, the total distance covered by the rabbit is given by:

Total distance = 4 units + 2 units + 1 unit

Total distance = 7 units.

Since the second point is at 10 units and the open circle arrow points to the right of the number line, the rabbit would cover 7 more distance from this point:

Total distance = 10 units + 7 units

Total distance = 17 units.

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The subtotal for Abdiel's takeout order is $21.50. What will Abdiel's total be if he uses a coupon for 10% off the subtotal and leaves a 20% tip before the discount? (2 points)
$22.15
$27.95
$23.22
$23.65

Answers

Answer:

Abdiel's total would be $23.22, which is the answer choice C.

Step-by-step explanation:

The total cost of Abdiel's order would be calculated as follows:

Calculate the tip before the discount: $21.50 x 20% = $4.30

Add the tip to the subtotal: $21.50 + $4.30 = $25.80

Calculate the discount: $25.80 x 10% = $2.58

Subtract the discount from the total cost: $25.80 - $2.58 = $23.22

So, Abdiel's total would be $23.22, which is the answer choice C.

Winston installs a fence post every eight yards after the first post he installs 25 more how long is the fence that he builds​

Answers

The length of the fence that Winston installs is 200 yards

What is an equation?

An equation is an expression that contains numbers and variables linked together by mathematical operations of addition, subtraction, multiplication, division and exponents. An equation can either  be linear, quadratic, cubic, depending of the degree of the variable.

Winston installs a fence post every eight yards after the first post he installs 25 more, therefore:

The length of the fence = 8 yards * 25 post = 200 yards

The length of the fence is 200 yards

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A total of $25,000 is going to be split between adam and krissy with adam receiving $3000 less than krissy. how much will each get?

Answers

Answer:

Adam=$11000, Krissy=$14000

Step-by-step explanation:

Adam gets 3000 less

Adam=(25000-3000)÷2=11000

Krissy=11000+3000=14000

F(x)=[[x]]. What is f(10)

Answers

Fx(10)=10
Y=10
You plug in the 10 for the x

What is the slope of the line passing through the points (2, 5) and (-1,-4)?

Answers

Answer:

m=3

Step-by-step explanation:

slope of the line is 3

mark me the brainliest

The perimeter of a rectangle is 60 cm. Its width measures
16 cm. What is its length?
Let x= the length of the rectangle. Choose the equation that represents this
problem.
O A. 2x-32=60
O B. 2x+16=60
O C. 2x+32=60
O D. x+16=60

Answers

O D. x+16=60

The answer

An item is regularly priced at $47. Joe bought it at a discount of 65% off the regular price. Use the ALEKS calculator to find how much Joe paid. ​

Answers

Joe paid $17 for the item

What is the Cartesian form of (5i-3)?

Answers

Answer: The Cartesian form of a complex number is the expression of the number in the form of x + yi, where x and y are real numbers and i is the imaginary unit.

The Cartesian form of (5i - 3) is 0 + (5i - 3).

Step-by-step explanation:

The number of tickets purchased by an individual for Beckham College's holiday music festival is a uniformly distributed random variable ranging from 5 to 15. Find the mean and standard deviation of this random variable. (Round your answers to 2 decimal places.)​

Answers

Od loves your everyday

The following frequency distribution presents the batting averages Major League Baseball players who had 300 or more plate appearances during recent season; Batting Average Frequency 0.180-0.199 0.200-0.219 0.220-0.239 0.240-0.259 0.260-0.279 0.280-0.299 0.00-0.319 0.320-0,339 0.340-0.359

Answers

The construction of the graph is shown here.

Also cumulative frequency in the table form mentioned here. This can be solved using the concept of frequency distribution.

What is frequency distribution?

Tables or charts of frequency distributions are used to represent them. Frequency distributions can display the proportion of observations or the actual number of observations that fall inside each range. The distribution is known as a relative frequency distribution in the latter case.

Relative frequency distributions and cumulative frequency distributions are the two primary forms of frequency distributions utilised in data analysis. Both depend on frequency, which is the amount of times something happens inside a specific data set in descriptive statistics.

Class                       Frequency                        Cumulative frequency              

0.180-0.199                  2                                      2

0.200-0.219                10                                     12

0.220-0.239               39                                    51

0.240-0.259               56                                    107

0.260-0.279               60                                     167

0.280-0.299               49                                     216

0.300-0.319               27                                      243

0.320-0.339               12                                      255

0.340-0.359                1                                        256

The construction of the graph is shown below:

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The complete question is as follows:

What percentage of the budgeted food is the actual food?

Budgeted: 200
Actual: 230

Answers

The actual food is 115% of the budgeted food.

What is the percentage?

The percentage is defined as a ratio expressed as a fraction of 100.

The data is given in the question, as follows:

Budgeted: 200

Actual: 230

To determine the percentage of the budgeted food that is the actual food, we can divide the actual amount by the budgeted amount and multiply by 100.

Percentage = (Actual / Budgeted) * 100

Percentage = (230 / 200) x 100

Percentage = 1.15 x 100

Apply the multiplication operation, and we get

Percentage = 115%

So, the actual food is 115% of the budgeted food.

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Mr. Tabor believes that less than 75% of the students at his school completed their math homework last night. The math teachers inspect the homework assignments from a random sample of 50 students at the school. The math teachers inspect the homework assignments from a random sample of 50 students at the school. Only 68% of the students completed their math homework. A significance test yields a P-value of 0.1265. 1a. Explain what it would mean for the null hypothesis to be true in this setting. 1b . Interpret the p-value. 1c. What conclusion would you make at the alpha = 0.05 signifigance level?

Answers

Answer:

1a. The null hypothesis in this setting would mean that the proportion of students who completed their math homework is equal to or greater than 75%.

1b. The p-value represents the probability of observing a sample proportion as extreme as or more extreme than the sample proportion observed (68%), given that the null hypothesis is true. In this case, the p-value of 0.1265 indicates that there is a 12.65% chance of observing a sample proportion as extreme or more extreme than 68%, assuming the true proportion is equal to or greater than 75%.

1c. At the alpha = 0.05 significance level, we reject the null hypothesis if the p-value is less than 0.05. In this case, the p-value of 0.1265 is greater than 0.05, meaning we fail to reject the null hypothesis. Therefore, at the alpha = 0.05 significance level, we cannot conclude that less than 75% of students completed their math homework.

Find the measurement of the following angels and please show work, Im doing corrections aa due at the end of today I will give crown if you try ur best and giving 15 points please please help

Answers

Answer:

x=90° (given)

54°+90°+z=180°

144°+z=180°

z=180°-144°

z=30°

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