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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.
In an investigation of alcohol use among college students, each male student in a sample was categorized both according to age group and according to the number of heavy drinking episodes during the previous 30 days ("Alcohol Use in Students Seeki..
Gender bias in syntax textbooks. To what extent do syntax textbooks, which analyze the structure of sentences, illustrate gender bias?
Given P(x), where P describes the kth Lagrange polynomial that interpolates f at k+ 1 points:
if z is a standard normal variable what is the probability p-0.73 lt z lt
trials are performed in sequence. if the last two trials were successes then the next trial is a success with
James said that he saw a picture of a beautiful girl stashed in Stephen's locker. We can only conclude that Stephen has broken the rules.
1. an srs of size 10 is drawn from a population that has a normal distribution. the sample has a mean of 111 and a
A sample of 10 electronic tubes produced by a company showed a mean lifetime of 1200 hours and a standard deviation of 100 hours. estimate the mean and the standard deviation of the population of all such tubes produced by the company?
The following ANOVA summary data are the result of a regression with sales per year (dependent variable)as a function of promotion expenditures per year (independent variable) for a toy company.
We have a box of 12 light bulbs. The probability that a particular light bulbs lights on opening is 0.95. This meets the binomial assumptions. Find the probability that 9 light bulbs light up.
Assuming that the shipment includes 6% defectives, what is the probability that the shipment will be accepted?- Plot a line graph of the table created in (c).
Genzero Pharmaceuticals developed the following regression model based on time series data from the past 33 quarters, for one of its non-prescription cold remedies:
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