The OLS Slope Estimator Is Not Defined If There Is

question 52

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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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and breathing.

Fear of Heights

Also known as acrophobia, it is an anxiety disorder characterized by an extreme fear of high places.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to perceived threats, activating the fight or flight response.

Reduce Stress

Strategies or actions aimed at decreasing physical, emotional, or mental tension, strain, or discomfort.