Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher
Question:
Whenever the lagged dependent variable appears as an explanatory variable, the R2 is usually much higher than when it is not included. What are the reasons for this observation?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (18 reviews)
The lagged term represents t...View the full answer
Answered By
Robert Mwendwa Nzinga
I am a professional accountant with diverse skills in different fields. I am a great academic writer and article writer. I also possess skills in website development and app development. I have over the years amassed skills in project writing, business planning, human resource administration and tutoring in all business related courses.
4.90+
187+ Reviews
378+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The demand for electric power is usually much higher during the day than it is at night, and utility companies often sell power at night at much lower prices to encourage consumers to use the...
-
What are two reasons for not having drill bushings actually touching the workpiece? Notice in Figure 29-8 how many of the designs violate this rule. It is not uncommon to have conflicts and...
-
What are two reasons for using layered protocols?
-
A $250 suit is on sale for $190, and a $90 pair of shoes is on sale for $65. Find the average percent decrease in price for the 2 items.
-
Say the demand function for a product is given by p = 100 ln (q + 1). (a) What will be the price if 19 units are demanded? (b) How many units, to the nearest unit, will be demanded if the price is...
-
Transverse wave velocity show that the velocity of transverse waves in the [111] direction of a cubic crystal is given by v s = [1/3(C 11 C 12 + C 44 /p] 1/2 .
-
Name a major difference between software development life cycle methodologies and ad hoc approaches to developing a software product.
-
The manager of a small convenience store does not want her customers standing in line for too long prior to a purchase. In particular, she is willing to hire an employee for another cash register if...
-
For the function, evaluate the following. f(x, y) = x + y-x+5 (a) f(0, 0) (b) f(1, 0) (c) f(0, -1) (d) f(a, 2) (e) f(y, x)
-
On January 1, 2024, Majestic Mantles leased a lathe from Equipment Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase...
-
Refer to the VAR regression results given in the following table. From the various F tests reported in the three regressions given there, what can you say about the nature of causality in the three...
-
Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher than when it is not included. What are the reasons for this observation?
-
What type of reward system (fixed or variable) would you recommend for each job and why?
-
Which system of electing judges, partisan or nonpartisan, do you think is better for preserving the goals of the judicial system?
-
Do you think that there should be more cooperation or sharing of administrative responsibilities either among the court staff or among judges to improve the scheduling and timing problems?
-
Suppose that you have $\$ 50,000$ available today and can invest it at $7 %$ per year. How long will it be before you have accumulated $\$ 500,000$ in the investment?
-
Given that most judges were attorneys who specialized in only one or two areas of law, should they be required to learn (take classes on) other areas of law rather than leaving it up to them to put...
-
Suppose that you have $\$ 50,000$ and need to invest it so that you will have $\$ 1,000,000$ twenty years from now to repay a debt. What interest rate do you have to earn, assuming monthly...
-
Repeat Problem 10.53 for flow rates of 7.5 gal/min and 10.0 gal/min. Repeat Problem A fluid power system incorporates a directional control valve similar to that shown in Fig. 10.30 (a). Determine...
-
Reduction in sales All of the above 29. Belt of an electric motor is broken, it needs a. Corrective maintenance b. Scheduled maintenance c. Preventive maintenance d. Timely maintenance. 30. The...
-
How many dependency exemptions are the following taxpayers entitled to, assuming the people involved are U.S. citizens? Which dependents qualify for the child credit? a. Andrew supports his cousin...
-
Juan and Maria, who have two young children, are in the process of obtaining a divorce. Juan expects to have $200,000 of income each year while Maria expects to have $60,000 of income each year....
-
Bill and Mary plan to marry in December 2017. Bills salary is $32,000 and he owns his residence. His itemized deductions total $12,000. Marys salary is $39,000. Her itemized deductions total only...
-
Reflect on a group interview you've had: * Was there anything you struggled with in preparing for the peer interviews? * What would you have changed about your interview? What would you have kept the...
-
Please conduct comprehensive research on the status of Metaverse, Choose a company, an industry, a product, or a service, and Share the strategies being used in Metaverse to develop a competitive...
-
Renovation and Restoration of community Park project For Risk management plan External risk : Budget Fluctuations in local economy Environment disasters Internal Risk: Safety Not enough money, staff...
Study smarter with the SolutionInn App