les of Econometrics y 14,2018 ·Write your answer in the space provided or on a s
ID: 3044470 • Letter: L
Question
les of Econometrics y 14,2018 ·Write your answer in the space provided or on a separate sheet of paper. 1) For the case of the multiple regression problem with two explanatory variables, show that minimizing the sum ot squared residuals results in three conditions: t A 1t i-1 i=1 2) The probability limit of the OLS estimator in the case of omitted variables is given in your text by the following formula: Give an intuitive explanation for two conditions under which the bias will be small. 3) Your textbook extends the simple regression analysis of Chapters 4 and 5 by adding an additional explanatory variable, the percent of English leaners in school districts (PctE). The results are as follows: and Test Score 698.0-1.10 STR-0.65PctEL Explain why you think the coefficient on the student-teacher ratio has changed so dramatically (been more than halved).Explanation / Answer
Q 3 )
Because the coefficients are a measurement of how much each variable explains your response variable. If your variables are correlated, they’ll overlap in how much they explain so they will affect each other coefficients.
That's why the when add the new variable in regression model then coefficent are changed .
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