Question: Please answer all questions 1. (Definitions and concepts) Define or describe the followings. Stick to the notation from the lectures. You need to add your

Please answer all questions

1. (Definitions and concepts) Define or describe the followings. Stick to the notation from the lectures. You need to add your explanations in words, if you use mathematical expressions. Be complete and concise. Adding irrelevant material will be penalized. (a) Endogeneity (b) Significance level (c) P-value 1 (d) Perfect collinearity (e) Multicollinearity (f) The multicolinearity problem (g) The bias-variance tradeoff in adding an additional independent variable (specify the conditions of the tradeoff) (h) Dummy variable trap

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