This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: By including another variable in the regression, you will A) decrease the regression R2 if that ... (Read 219 times)

2125004343

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
By including another variable in the regression, you will
 
  A) decrease the regression R2 if that variable is important.
  B) eliminate the possibility of omitted variable bias from excluding that variable.
  C) look at the t-statistic of the coefficient of that variable and include the variable only if the coefficient is statistically significant at the 1 level.
  D) decrease the variance of the estimator of the coefficients of interest.

Question 2

If you included both time and entity fixed effects in the regression model which includes a constant, then
 
  A) one of the explanatory variables needs to be excluded to avoid perfect multicollinearity.
  B) you can use the before and after specification even for T > 2.
  C) you must exclude one of the entity binary variables and one of the time binary variables for the OLS estimator to exist.
  D) the OLS estimator no longer exists.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ecabral0

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 29, 2018
Answer to Question 1

Answer: B

Answer to Question 2

Answer: C


2125004343

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
:D TYSM

Bigfoot1984

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Variable expressivity Variable expressivity
Refraction Through Uniform and Variable Thickness Glasses Refraction Through Uniform and Variable Thickness Glasses
Regression Analysis Regression Analysis
The schematic of a variable valve timing control circuit, showing that battery power (+) is being ... The schematic of a variable valve timing control circuit, showing that battery power (+) is being ...
Summary of Single Variable Discrete Models Summary of Single Variable Discrete Models
Blueberry bees (Osmia ribifloris) are efficient pollinators of a variety of plants, including this b Blueberry bees (Osmia ribifloris) are efficient pollinators of a variety of plants, including this b
Video: Introduction to Tuberculosis

For a complete list of videos, visit our video library