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Question: When using OLS, we assume that the errors are independent (i.e., not serially correlated) and normally distributed with constant variance (i.e., homoscedastic). These assumptions allow us to use the F and t distributions to perform significance tests on the estimated coefficients in the model. However, we often wish to estimate models in which we doubt the validity of these assumptions. For the following scenarios, explain why these assumptions may fail:
a. Estimating a model of stock prices as a function of changing market conditions
b. Estimating one's expenditure on housing as a function of one's income using cross-sectional data
c. Estimating the effect of median income on the per-capita level of public education spending using data from a sample of 100 cities
Use the theories of international trade and investment that have been presented in this chapter to help explain Brazil’s intentions and actions regarding the international information technology sector.
What is the Program Manager (PM) role regarding acquisition T&E? Additionally, what are some PM responsibilities? Why is it so important to have an Acquisition Program Baseline (APB) and baseline documentation?
Business has fallen off greatly at your upscale restaurant because of the economic crisis. List four things you can do to win back the loyalty of your past costumers.
Describe the relationship between marginal cost and total cost.
Suppose the company wants to set its price equal to full cost plus 30 percent. To determine cost, the company must estimate the number of units it will produce and sell in a year.
Describe the factor which determine the slope of the LM curve and whether an increase in theses factor(s) will make the curve flatter or steeper.
Discuss with your Learning Team the components and behaviors of devices needed to build a simple office network based on the following office scenario:
Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month.
In the lesson presented by Sal on Oligopolies and Monopolistic Competition he creates a two dimensional grid of the market types based on number of competitors and degree of product differentiation. Make sure you view this lesson.
Describe in detail the implementation of the 4ps marketing mix concept by this company icluding, competition, distribution strategy, target market, product strategy,
The fact that unemployment is rising while the labour force participation rate is falling is a sign that the Greek economy might be in recovery.
When did mortgage default and housing foreclosure rates begin to rise rapidly? When did the economy go into recession? Was there a causal relationship between the two? Discuss.
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