Multiple Choice
The determining function that drives movie ticket sales is given by the following equation: Salesit = α0 + α1 HolidaySeasonit + α2CastAwarenessit + Uit, where the unit of observation is a particular movie (i) in month (t) . Suppose one wanted to use cumulative past movie appearances of the entire cast of a movie as a proxy for CastAwareness. Which of the following conditions would not be one required for this to be an adequate proxy variable?
A) CumulativePastMovieAppearances to be correlated with CastAwareness.
B) HolidaySeason, CastAwareness, and CumulativePastMovieAppearances to be uncorrelated with "other factors" (Uit) .
C) CastAwareness to be uncorrelated with HolidaySeason.
D) HolidaySeason and CumulativePastMovieAppearances to be uncorrelated with "other factors" affecting CastAwareness.
Correct Answer:
Verified
Correct Answer:
Verified
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