Essay
The OLS slope estimator is not defined if there is no variation in the data for the explanatory variable. You are interested in estimating a regression relating earnings to years of schooling. Imagine that you had collected data on earnings for different individuals, but that all these individuals had completed a college education (16 years of education). Sketch what the data would look like and explain intuitively why the OLS coefficient does not exist in this situation.
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There is no variation in X in this case,...View Answer
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