In the Regression Model Unemployment Rate_it = α + γ₁

question 18

Multiple Choice

In the regression model Unemployment Rate_it = α + γ₁ × Alabama_it + γ₂ × South Carolina_it + γ₃ × North Carolina_it + β₁Income_it+ φYear_it + ε_it, the coefficients for the fixed effects of the model will be given by:

• A) φ.
• B) α.
• C) U_it.
• D) γ₁, γ₂, γ₃.

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Definitions:

Normally Distributed

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence.

Equal Variances

The assumption that two or more populations have the same variance.

Bonferroni Adjustment

It's a statistical correction method used to adjust confidence intervals or significance thresholds when multiple comparisons are made, reducing the chance of a type I error.

Type I Error Rate

The probability of rejecting a true null hypothesis, equivalent to the significance level of the test.