Multiple Choice
Given the following econometric model, wage = β0+ β1educ + u, can we eliminate the error term u entirely?
A) Yes, by including other observable factors, such as experience, that can also influence wage.
B) Yes, by ensuring that everyone reports wage accurately and truthfully.
C) No, because education is not always reported accurately.
D) No, because many factors affect wage, that we cannot even list, let alone observe.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Which of the following refers to panel
Q4: Random sampling complicates the analysis of cross-sectional
Q5: The term 'u' in an econometric model
Q6: In the following econometric model, wage =
Q7: Experimental data are sometimes called retrospective data.
Q9: The parameters of an econometric model _.<br>A)include
Q10: Which of the following is true?<br>A)A variable
Q11: The constants of econometric models are referred
Q12: An empirical analysis relies on _ to
Q13: A data set that consists of a