MG205 - Linear Regression Relationship Between Two Variables Linear Equation to Observed Data, OLS Regression - Econometrics Assignment Help-

Assignment Task -                 
 

Question 1 

We ran an OLS regression of y on x. We then used the residuals of that regression and plotted them in the ?ˆ, x space, together with the OLS regression line of regressing x on ?ˆ. Have we run the regression of y on x properly, or have we instead made a computational mistake? Discuss briefly. (Word Limit: 80 words) 

Question 2 

Provide an example of non-random sampling generating a bias in the OLS estimates. To do this, you need to specify: (1) what is the question of the research study, (2) what is the population model and the empirical strategy, (3) why is the sampling process non-random, and (4) how is the non-random nature of the sampling process generating a bias in the estimates. Do not use an example of a non-random sampling process that has already been discussed in the MG205 course. (Word Limit: 120 words) 

Question 3 

You are the manager of a call center that provides technical support to customers. There are 156 call center workers in your team (74 men and 82 women). The allocation of calls to workers is as follows: (a) if all workers are busy when a call arrives, the call joins a queue, and the first worker that becomes free is allocated to the call at the front of the queue, and (b) if some workers are not busy, they form their own queue and the first worker in the queue is allocated the next incoming call. You want to study whether workers provide better service to customers of their own gender. The dependent variable of interest is whether the customer later reports that their problem was solved (this is reported in a survey administered one week after the call). Provide an empirical strategy and a population model to study your question. Be explicit about the definition of the variables in the model. (Word Limit: 120 words) 

Question 4 

We are going to run a regression of y on x1, controlling for x2. Looking at the evidence below, discuss whether the variance of the estimator of ˆ1 is likely to be high or low. (Word Limit: 100 words) 

Question 5

Consider the study by Marie and Zolitz (2017) on whether being able to legally smoke cannabis affects exam performance in Maastricht University. We have just learned that, between 2010 and 2012, Liege University (a Belgian university located close to Maastricht) was severely affected by funding cuts. As a result, it had to decrease the number of incoming students, while maintaining a merit-based admission system. This meant that more Belgian students applied to study in Maastricht University. Write down a population model, exploiting the variation in Marie and Zolitz (2017), to study the effect of cannabis on exam performance. Be explicit about the way that each variable is constructed. State the identification assumption associated with the population model. Discuss whether the funding cuts in Liege University affect the validity of the identification assumption. (Word Limit: 200 words

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