Question: Imagine you would like to estimate the effect ofthe amount of rainfall in a given month in a region on the number of cars that


Imagine you would like to estimate the effect ofthe amount of rainfall in a given month in a region on the number of cars that were caught speeding in that region in a given month. You have data on both variables for multiple months. For this estimation. you can write down the error term of the econometric model as a,- + um. a} What kind of factors are captured in (If? Give a general explanation and one example of such a factor in the specic context described above. b) What kind of factors are captured in \"it? Give a general explanation and one example of such a factor in the specic context described above
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
