A large-landholding farmer outsmarts others by running an experiment to measure the effect of fertilizer application...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A large-landholding farmer outsmarts others by running an experiment to measure the effect of fertilizer application on agricultural yields. She randomly assigns her 400 land plots into two groups. In the first group, she inputs 20 kg/mu of fertilizers, while the other group receives 40 kg/mu of fertilizers. She also keeps other agricultural inputs (water, pesticides, labors) equally between these two groups. Let Y; denote the yields for ith plot, let X, denote the amount of fertilizer application per unit of land, (X; = 20 or 40), and consider the regression model Y₁ = Bo + B₁ X₁ + μli 1. Explain what the term u; represents. Proposal a potential reason that why different plots might have different values of ui? (2 point) 2. Is E[u₁|X₁] = 0 in this case? Explain why or why not? (1 point) 3. The estimated regression is Y₁ = 300 +0.7X₁ + fbi. (a) Is 3₁ = 0.7 an unbiased estimator? (1 point) A large-landholding farmer outsmarts others by running an experiment to measure the effect of fertilizer application on agricultural yields. She randomly assigns her 400 land plots into two groups. In the first group, she inputs 20 kg/mu of fertilizers, while the other group receives 40 kg/mu of fertilizers. She also keeps other agricultural inputs (water, pesticides, labors) equally between these two groups. Let Y; denote the yields for ith plot, let X, denote the amount of fertilizer application per unit of land, (X; = 20 or 40), and consider the regression model Y₁ = Bo + B₁ X₁ + μli 1. Explain what the term u; represents. Proposal a potential reason that why different plots might have different values of ui? (2 point) 2. Is E[u₁|X₁] = 0 in this case? Explain why or why not? (1 point) 3. The estimated regression is Y₁ = 300 +0.7X₁ + fbi. (a) Is 3₁ = 0.7 an unbiased estimator? (1 point)
Expert Answer:
Answer rating: 100% (QA)
1 The term ui represents the error term or the unobserved factors that affect the yield of the land plots apart from the amount of fertilizer applied It captures the combined influence of various fact... View the full answer
Related Book For
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson
Posted Date:
Students also viewed these accounting questions
-
A professor decides to run an experiment to measure the effect of time pressure on final exam scores. He gives each of the 400 students in his course the same final exam, but some students have 90...
-
In tests designed to measure the effect of the concentration in percent of a certain additive on the drying time in hours of paint, the following data were obtained. a. Compute the least-squares...
-
A legal researcher wanted to measure the effect of length of a criminal trial on the length of jury deliberation. He observed in a sample of 10 randomly selected courtroom trails the following data...
-
(2) Write an 8086-assembly code to control the interrupt of (3) stepper motors and (2) servo motors in which each motor has its interrupt. The buffered mode for master was required with normal end of...
-
Under U.S. GAAP, litigation costs to successfully defend an intangible right are capitalized and amortized over the remaining useful life of the related intangible. How are these costs typically...
-
When performing MRP calculations, the planned order releases of an item are incor- porated into the gross requirements of any child of that item, multiplied by what?
-
A solar system is to be installed in Phoenix, Arizona. The estimated amounts of energy from the system as a function of collector area are shown in the following tabulation. If the solar system costs...
-
Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joints. The company has two divisions, Sole Inserts and Heel Inserts. A...
-
Emails and memos are very similar. What are the two main differences between the two types of communication? Explain in details .
-
Food scientists have created a new oil. At room temperature, the oil is a liquid. As the oil gets colder however, it stiffens (thickens) into a sticky gel. To explore the properties of the oil, the...
-
What does the following code print? Why? char ch1='A'; char ch2 = '1'; System.out.println(++ch1 + ch2++);
-
Miller Company's contribution format income statement for the most recent month is shown below: Sales (28,800 units) Variable expenses Total $ 172,800 103,680 Contribution margin 69,120 Fixed...
-
How can globalization and increased competition lead firms to sever ties with longtime suppliers?
-
1. When we set up business, we decided to operate as a sole proprietorship (with one as the owner and other as an employee). Why was this a sensible decision for you? Your answer should reference at...
-
Imagine that you are a consultant for an investment fund which sold a client a call option on a stack. Explain to yen]: management {who are smart but not mathematically trained} what risk is present...
-
1. Who's Liable When a Recalled Product Causes an Injury? and why 2. what would happen if the product was never recalled and the person gets hurt?
-
Drive reduction results in the following process: Drive > Need > Behavior Need > Drive > Behavior Incentive > Need > Behavior Behavior > Need > Drive
-
Study the pictures/images below. Obviously these was focus on LT sociology, anthropology and poltical science. Try to do some analysis by finding clues that are synonymous with the main concepts....
-
In September, Seattle's daily high temperature has a mean of 70oF and a standard deviation of 7oF. What are the mean, standard deviation, and variance in oC?
-
Consider the instrumental variable regression model Yi = 0 + 1Xi + 2Wi + ui, where Xi is correlated with ui and Zi is an instrument. Suppose that the first three assumptions in Key Concept 12.4 are...
-
Suppose that C is an n n symmetric idempotent matrix with rank r and let a. Show that C = AA, where A is n r with AA = Ir. b. Show that AV ~ N(0r, Ir). c. Show that VCV ~ Xr2. V~N(0 In)
-
If \(X_{t} \sim N\left(0, \sigma^{2} t ight)\) and \(Y_{t}=e^{X_{t}}\), calculate the pdf of \(Y_{t}\). Calculate \(\mathbf{E}\left[Y_{t} ight]\) and \(V\left(Y_{t} ight)\). Calculate the transition...
-
If \(X_{t} \sim N(0, t)\), calculate the distribution of \(\left|X_{t} ight|\). Calculate \(\mathbf{E}\left|X_{t} ight|\) and \(V\left(\left|X_{t} ight| ight)\).
-
Let \(X_{t}, t \geq 0\), be defined as \[X_{t}=\left\{B_{t} \mid B_{t} \geq 0 ight\}, \quad \forall t>0\] that is, the process has the paths of the Brownian motion conditioned by the current value...
Study smarter with the SolutionInn App