Estimate the equation using weighted least squares

Assignment Help Econometrics
Reference no: EM131135293

Use the data set CRIME1 and consider the linear probability model:

arr86 = β0 + β1pcnv + β2avgsen + β3totime + β4ptime86 + β5qemp86 + ε

(a) Use the "describe" command and state what the definitions of each of the variables in the model are. Create the dummy variable arr86 such that it takes value 1 if number of arrests in 1986 was greater than or equal to 1, and 0 otherwise. Thus this variable is simply an indicator for whether the individual was arrested in 1986 at all or not.

(b) Estimate this model by OLS and find the fitted (predicted) values for arr86. Verify that these are strictly between 0 and 1. What are largest and smallest fitted values (make use of the "summarize" command).

(c) Estimate the equation using weighted least squares (WLS).

(d) Use the WLS estimates to determine whether avgsen and tottime are jointly significant at the 5% level.

Attachment:- CRIME1.rar

Reference no: EM131135293

Questions Cloud

Marketing strategy in natural environment : Which stage in the product development process allows for an assessment of the marketing strategy in a natural environment?
Discuss response actions required in the event of a spill : Provide recommendations for preventing spills or releases. Discuss response actions required in the event of a spill or release. Discuss how you applied each of the steps in the GEBMO process and what risks you identified.
Satisfied with the inequality of being over-rewarded : In terms of equity sensitivity or the extent to which individuals will be likely to take action when faced with inequality, which of the following groups of people would be satisfied with the inequality of being over-rewarded?
What are some important considerations for selecting storage : What are some important considerations for selecting a transfer, storage, and disposal facility (TSDF)? Which ones should be first on the list when conducing an audit of a TSDF?
Estimate the equation using weighted least squares : Estimate the equation using weighted least squares (WLS). Use the WLS estimates to determine whether avgsen and tottime are jointly significant at the 5% level
Explain purpose and function of the national response center : Explain the purpose and function of the National Response Center. Your response must be at least 150 words in length. You are required to use at least your textbook as source material for your response
How does the weighted scoring approach : how does the weighted scoring approach avoid the drawbacks of the nvp approach? Can the two approaches be combined? How? What wright's would be appropriate if they were combined?
Commercialization concept testing product development : Which of the following steps immediately succeeds the business analysis step in the process of developing a new product? Test marketing Idea screening Commercialization Concept testing Product development
Prepare both swot matrix and in-depth discussion : Select a company and perform a SWOT analysis. Prepare both a SWOT matrix and an in-depth discussion of the matrix. Explain how it can use its strengths to take advantage of opportunities or mitigate some of the threats you have identified.

Reviews

Write a Review

Econometrics Questions & Answers

  Describe how you would implement this algorithm

Derive the Newton-Raphson algorithm for maximizing the multinomial log-likelihood, and describe how you would implement this algorithm.

  What is salvage value for each is estimated cost of the land

An oil company plans to purchase a piece of vacant land on the corner of two busy streets for $70,000. The cost of the types of businesses Plan A) Cost: $75,000 Net Annual Income: $23,300 Plan B) Cost: $230,000 Net Annual Income: $44,300 Plan

  Should the firm buy the 10trucks if real interest rate given

Acme Landfill Company is considering the purchase of 10 better trash collection trucks. Each truck costs $50,000 and will last 7 years. the firm estimates that the entire purchase will increase its annual total annual revenues by $100,000 per year..

  Regression analysis question

Regression analysis was used to estimate the given seasonal forecasting equation, D1 is a variable that is equal to one in 1st quarter and zero otherwise;

  What is the maximum acceptable price

A car rental agency is considering a modification in its oil change procedure. currently, it uses a type X filter, which cost $5and must be changed every 7,000 miles along with oil (5 quarts.) Between each oil change , one quart of oil must be add..

  Determine the poverty rate

Between 2009 and 2010, the poverty rate increased for non-Hispanic Whites (from 9.4 percent to 9.9 percent), for Blacks (from 25.8 percent to 27.4 percent), and for Hispanics (from 25.3 percent to 26.6 percent). For Asians, the 2010 poverty rate (..

  Techniques of artists like andy warhol and roy lichtenstein

How did Pop Art challenge conventional ideas about originality? Consider the subject matter and techniques of artists like Andy Warhol and Roy Lichtenstein.

  How to mark the mean as the balancing point

the claims for a new long-life battery were justified, a consumers' group tested a random sample of 20 batteries. Each battery was subjected to a standard heavy load until burnout, providing the following 20 lifetimes ( in minutes): 65.1 58.4 64.9..

  How much should expect chocolate syrup sales to increase

A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much (what percentage) should they expect chocolate syrup sales to i..

  By how much does the money supply change

Assuming that people hold no currency, what happens to each of these values if the central bank changes the reserve requirement ratio to 3%, banks still want to hold the same percentage of excess reserves, and banks don't change their holdings of ..

  Which strategy is more beneficial to barnacle

What would be the profit of a new entrant if the subsidy is eliminated and Barnacle continues to produce the monopoly level of output?

  Suppose that investment demand increases by 100 assume that

suppose that investment demand increases by 100. assume that households have a marginal propensity to consume of 80

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