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Study of tree frogs. Refer to the Experimen- tal Zoology study of the optomotor responses of tree frogs, Exercise 5.9 (p. 271). Recall that the researchers modeled the light intensity at which optomotor response was ?rst observed (y) as a function of spectral wavelength (x). In the solution to the exercise you hypothesized the third-order model, E(y) = β0 + β1x + β2x2 + β3x3. Suppose data on n = 10 tree frogs were collected, with spectral wavelength (measured in microns) set at x = 1 for the ?rst frog, x = 2 for the second, x = 3 for the third,... , and x = 10 for the 10th frog.
(a) Demonstrate the potential for round-off errors in the parameter estimates by ?nding the cor- relation between x and x2,x and x3, and x2 and x3.
(b) Provide a formula for the coded independent variable u that will reduce level of multi- collinearity in the independent variables.
(c) Refer to part b. Find the correlation between u and u2, u and u3, and u2 and u3. What do you observe? Is the level of correlation reduced for all three pairs?
Design a simple econometric research project
Multiplicative decomposition method
The Australian government administers two programs that affect the market for cigarettes.
Solve the forecast model
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type
Determine when a competitively produced product generates negative externalities in production, the industry will,
Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.
M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.
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