Question: Use the data for the year 1990 in INFMRT.RAW for this exercise. (i) Reestimate equation (9.43), but now include a dummy variable for the observation

Use the data for the year 1990 in INFMRT.RAW for this exercise.
(i) Reestimate equation (9.43), but now include a dummy variable for the observation on the District of Columbia (called DC). Interpret the coefficient on DC and comment on its size and significance.
(ii) Compare the estimates and standard errors from part (i) with those from equation (9.44). What do you conclude about including a dummy variable for a single observation?

Step by Step Solution

★★★★★

3.53 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

i Adding DC to the regression in equation 937 gives infmrt 2395567 logpcinc 274 logphysic 629 logpop... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

839-M-E-E-A (650).docx

120 KBs Word File

Students Have Also Explored These Related Econometric Questions!

Use the data for the year 1993 for this question, although you will need to first obtain the lagged murder rate, say mrdrte - 1. (i) Run the regression of mrdrte on exec, unem. What are the...

Use the data in RENTAL.RAW for this exercise. The data on rental prices and other variables for college towns are for the years 1980 and 1990. The idea is to see whether a stronger presence of...

Use the data in NBASAL.RAW for this exercise. (i) Estimate a linear regression model relating points per game to experience in the league and position (guard, forward, or center). Include experience...

C4 Use the data for the year 1990 in INFMRT.RAW for this exercis (i) Reestimate equation (9.43), but now include a dummy variable for the observation on the District of Columbia (called DC)....

C9.4 Use the data for the year 1990 in INFMRT.RAW for this exercis IN (i) Reestimate equation (9.37), but now include a dummy variable for the observation on the District of Columbia (called DC)....

Use the data for the year 1990 in INFMRT for this exercise. (i) Reestimate equation (9.43), but now include a dummy variable for the observation on the District of Columbia (called DC). Interpret the...

Write 2 paragraphs about Macro risks and the term structure of interest rates article. No max word count, page count, or formatting requirements but has to be submit to my tutor's work as my own....

6 Q1. In class I demonstrated a regression of vehicle fatality rates on the percentage of the population living in a rural area on the state level using data from 2000. See the .dole...

1. What is the issue being addressed in the paper? 2. What are the findings of the paper? 3. Why is this paper important to auditors, and what are the implications of this paper for the auditing...

** You can use EXCEL or any other software. ** You need to include your printout in your submissions. The layout and format of the paper should include the following sections: Title page, Abstract,...

Find the points of intersection of the curves r = 2 and r = 4 cos (?

What are the typical voltage gain A d of the I.M 324 op-amp and the typical CMRR? Use these values to calculate the common mode gain A cm , of the LM 324 op-amp.

23. LO.3 Zack is a farmer who buys his feed and fertilizer from a farmers cooperative. In 2011, Zack purchased $300,000 in feed and fertilizer for the farm and $10,000 of household goods. Because the...

Provide the details for the proof of Corollary 16.1. Section 16.3

What is meant by specification errors?

What would you do if you had to choose between a model that satisfies all statistical criteria but does not satisfy economic theory and a model that fits established economic theory but does not fit...

Table 7-5, found on the textbook's Web site, gives data on the real gross product, labor input, and real capital input in the Taiwanese manufacturing sector for the years 1958 to 1972. Suppose the...

Espar A major cab company in Chicago has computed its mean fare from O'Hare Airport to the Drake Hotel to be $26.24, with a standard deviation of $3.63. Based on this information, complete the...

Help me with this question Students Who Major in Business It has been reported that 20.4% of incoming freshmen indicate that they will major in business or a related eld. A random sample of 440...

30 Assume that adults have IQ scores that are normally distributed with a mean of 104.4 and a standard deviation 21.3. Find the first quartile Q1, which is the IQ score separating the bottom 25% from...