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Run a regression of testscr on str and avginc, where testscr and str are as above, and avginc is a measure of the average household in come in the school district.
a. What is the correlation between str and avginc. Does this correlation suggest the model specification suffers from serious multicolinearity?
b. What is the estimated effect of str on testscr?
c. Now create a scatterplot of testscr on avginc, and use OLS to fit a straight line to the data. Do you think this simple regression equation suffers from specification bias? If so, how?
d. What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling variability? In other words, what is the probability that the R2 is actually zero? Explain how one conducts an F test to test such a hypothesis.
Use a diagram to show consumer surplus price of 8.00and production of 6 million meals per day. If price remain at 8.00but production were cut to 3 million meals per day.
How does a decrease in demand for movie tickets affect equilibrium in the market for movie tickets and what is the marginal cost of producing the second car?
IBM Company has a reputation for not necessarily making new technology, but acquiring relatively new firms with innovations and successful technology.
Draw the budget constraint for a world with both fixed time costs and fixed money costs of working. What is the effect of fixed costs on the reservation wage?
The U.S. government offers significant per unit subsidy payments to U.S. sugar growers. Describe the effects of the introduction of such subsidies on the market for sugar and themarket for artificial sweeteners. Explain whether the demand curve (D..
Graph the demand and marginal cost curves and calculate and indicate on the graph the equilibrium price and quantity
Employ the information in the above table to compute th average product (AP) and marginal product (MP). At the production level of 200,000 chips, is the company's average variable cost decreasing, at a minimum or increasing?
b. What is the Economic profit or loss you are making? c. What output level is the minimum point for Average Total Costs (ATC)? d. What output level, Q, and price/trip, P, will economic profits be zero? Note
Assume you were appointed economic adviser to a less developed country in Africa. The country seeks to encourage capital formation and wants to raise the rate of saving of its own residents and encourage foreigners to invest in their country.
A rental apartment complex for residential use in the City was placed in service by a calendar year company 6 years ago on February 27 for $530,000. The apartments were sold on March 6 this year. A rental apartment complex for residential use in ..
You put $20000 on deposit on your thirtieth birthday at 5 percent compounded annually. On your fortieth birthday, the account begins earning 6 percent. Then on your fiftieth birthday, it begins earning 7 percent.
Suppose that a student who has completed her undergraduate degree and is planniing pursuing an MBA as a full time student. The cost of the second year MBA program she is planning is $45,000 for tuition.
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