Consider the multiple regression model with two regressors X and Z, where both variables are determinants...

 

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Consider the multiple regression model with two regressors X and Z, where both variables are determinants of the outcome variable, Y. X and Z are uncorrelated. When you regress Y on X, the regression suffers from which of these? no omitted variable bias omitted variable upward bias omitted variable downward bias heteroskedasticity Question 11 1 pts The omitted variables bias increases: in smaller samples hen the included and omitted regressors are weakly correlated in larger samples when the included and omitted regressors are highly correlated Question 12 1 pts The regression output is as follows: predicted GDPgrowth=D0.75 + 1.17 x Tradeshare - 0.0005; RealGDPcap + 0.56, Education - 1.83* Revol. You want to test the hypothesis that the coefficient on Education = 0 and the coefficient on Revol = 0. When testing this hypothesis, you should do which of the following? Use t-statistics for each hypothesis and reject the null if both t-statistics are higher than the critical value. Use F-statistic and reject at least one of the hypothesis if the statistic exceeds the critical value. O Use t-statistic for each hypothesis and reject the null hypothesis if at least the t-statistics of one of the hypothesis exceeds the critical value. Use F-statistic and reject both hypotheses if the statistic exceeds the critical value. Consider the multiple regression model with two regressors X and Z, where both variables are determinants of the outcome variable, Y. X and Z are uncorrelated. When you regress Y on X, the regression suffers from which of these? no omitted variable bias omitted variable upward bias omitted variable downward bias heteroskedasticity Question 11 1 pts The omitted variables bias increases: in smaller samples hen the included and omitted regressors are weakly correlated in larger samples when the included and omitted regressors are highly correlated Question 12 1 pts The regression output is as follows: predicted GDPgrowth=D0.75 + 1.17 x Tradeshare - 0.0005; RealGDPcap + 0.56, Education - 1.83* Revol. You want to test the hypothesis that the coefficient on Education = 0 and the coefficient on Revol = 0. When testing this hypothesis, you should do which of the following? Use t-statistics for each hypothesis and reject the null if both t-statistics are higher than the critical value. Use F-statistic and reject at least one of the hypothesis if the statistic exceeds the critical value. O Use t-statistic for each hypothesis and reject the null hypothesis if at least the t-statistics of one of the hypothesis exceeds the critical value. Use F-statistic and reject both hypotheses if the statistic exceeds the critical value.