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If One Is Trying to Explain the Cross-Sectional Variation in Prices

Question 41

Multiple Choice

If one is trying to explain the cross-sectional variation in prices for milk across grocery stores in the country using commercial rental prices and a binary variable for if the grocery store chain owns a dairy farm, which method is most appropriate?


A) Multiple regression
B) Simple regression
C) Two stage least squares
D) Probit

Correct Answer:

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