Question 7 and 8

QUESTION 7 Suppose that n = 50, i_i.d observations for m. Xi) yield the following regressions results: A Y=49.2 +73.9X. SER = 13.4. R2 =0.78 (23.5} (16.4) Another researcher is interested in the same regression. but makes an error when entering the data into a regression program: The research enters each observation twice, ending up with 100 observations (with observation 1 entered twice, observation 2 entered twice and so forth). Using these 100 observations, what results will be produced by the regression program? Complete the spaces in the equation below. Report the intercept and slope to one decimal place. but report the R2 to two decimal places. f: + 'X,R2= QUESTION 8 In Question 7'. which (if any) of the following internal validity conditions are violated? O a. Omitted variable bias 0 b' Wrong functional form bias 0 c. Enorsinvariables bias 0 d' Simultaneous causality bias 0 e. None of the above interval validity conditions are violated Suppose a researcher collects data on houses that have been sold in a particular neighbourhood over the past year, and obtains the regressions results in the table shown below. This table is used for Questions 1-6. Dependent variable: In(Price) Regressor (1) (2) (3) (4) (5) Size 0.00042 (0.000038) In(Size) 0.69 0.68 0.57 0.69 (0.054) (0.087) (2.03) (0.055) In(Size) 0.0078 (0.14) Bedrooms 0.0036 (0.037) Pool 0.082 0.071 0.071 0.071 0.071 (0.032) (0.034) (0.034) (0.036) (0.035) View 0.037 0.027 0.026 0.027 0.027 (0.029) (0.028) (0.026) (0.029) (0.030) Pool X View 0.0022 (0.10) Condition 0.13 0.12 0.12 0.12 0.12 (0.045) (0.035) (0.035) (0.036) (0.035) Intercept 10.97 6.60 6.63 7.02 6.60 (0.069) (0.39) (0.53) (7.50) (0.40) Summary Statistics SER 0.102 0.098 0.099 0.099 0.099 R2 0.72 0.74 0.73 0.73 0.73 Variable definitions: Price = sale price ($); Size = house size (in square feet); Bedrooms = number of bedrooms; Pool = binary variable (1 if house has a swimming pool, 0 otherwise); View = binary variable (1 if house has a nice view, 0 otherwise); Condition = binary variable (1 if real estate agent reports house is in excellent condition, 0 otherwise)