Econometrics

You mint only include 11 dummies becauce we take wizard as a benchmark 1) a) Time trend: engender by 100 on the t so it roughly gives the clean monthly % growth in correspond ac. b) 9,6 3 extremum= 1 point in interpretation (log % and alone given) argumentation: when do we need to do a elongated regression toward the mean and time series. 2) 5,20 = F value and a p-value of 0 so the month dummies are jointly solid at both conventional level of significance. (so since we run a restricted and unrestricted model, we normally would do an F-test or we could take up the residual centre of squared) (3 point= the right df nr and the joint test) 3) a) uenm = 1 unit trade in the uenm rate (partial effect or postulateing each else things fixed) will reduce the total nr. of accidents. b) spd legality= makes the total nr of accidents fall. concourse are nowadays driving more carefully. Or peradventure we are omitting any(prenominal)thing th at is both correlated with seat blast law and total nr. of accident. c) belt law = maybe we once more shake omitted an important factor or people further pound more wild. (5 points) The main supposition of OLS: E(u given xi, twelve ect)= 0. So the covariance between them is 0. Omitted uncertain bias means that this assumption fails to hold because another variable is correlated with Y and some of the x´es.

If we had an omitted variable in the speed limit quality (ex. possibly something else have modificationd as well) then we would estimate beta. still 2 cases where we can omit something: when the omit ted variable is uncorrelated the variable th! at is in the model or if the omitted variable is nearly zero. 4) a) The change is now % point change instead. Lower uem there can be more cars on the road which increase the nr of acc. 5) Seatbelt causes more acc, merely not so many die from the law. 6) A optical test = residuals against time or against the lagged residuals. If we had serial corr we would need to use the Newly West 7) If the coefficient is nearly 1 (0,71 pres. In the data). There is no need for...If you want to get a full essay, guild it on our website: OrderCustomPaper.com

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