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You are estimating a cross-section regression for a sample of 100 cities in the US in which you hope to explain expenditure on education as a function of the median income in the community, the number of school-age children, and the level of state and federal grants received for educational purposes.
Would you expect hetroscedasticity to be a problem in this case? If, so what would be a proper way to test for hetroscedacisity? Would you use the Goldfeld-Quandt test or the White test? Why?
What would be the statistical properties of the estimated coefficients if you don’t do proper correction?
How would you correct for hetroscadecity?
Suppose the demand for towels is given by QD = 100 − 5P , and the supply of towels is given by QS = 10P . a) Derive and graph the inverse supply and inverse demand curves. 1 b) Solve for the equilibrium price and quantity. c) Suppose that supply chan..
Propose how it can conclude the efficient levels of information in an organization to justify taking risk over uncertainty.
Analyse the effect of an increase in the price of sim cards on the equilibrium price and equilibrium quantity of cellphones handsets
What can you conclude about relationship between the slope of a curve and its inelasticy? explain in nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment
Create realistic strategic options for a health care organization in planning for funding and expenses. Create realistic strategic options for a health care organization in valuing projects and budgets. Create realistic strategic options for a health..
Based on the analysis of the bubble policy given in this chapter, discuss why transaction costs are so important in explaining the success or failure of the EPA's bubble program. How would you devise a program that minimized the transaction costs of ..
Explain the statement that business investment depends inversely on the rate of interest while personal saving depends directly on the rate of interest.
explain exactly how you would take advantage of this situation to create a riskless profit.
Illustrate what are the main differences between Lenin's theory of how to bring about socialism and that of Bernstein's
The demand curve for product X is given by QD x = 220 − PX + 3PY + 0.001I where PY is the price of a related good Y, and I is income. The supply curve for good X is given by QS X = 10 + 3PX. What is the marginal effect of an increase in PY on the equ..
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
Find the equivalent equal payment series (A) using an A/G factor such that the two cash flows are equivalent at 10% compounded annually. First cash flow: Start at -$50 at year zero and goes up every year in increments of $50 so at year five its at $2..
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