Consider the Regression Example from Your Textbook, Which Estimates the Effect

question 19

Multiple Choice

Consider the regression example from your textbook, which estimates the effect of beer taxes on fatality rates across the 48 contiguous U.S. states. If beer taxes were set nationally by the federal government rather than by the states, then

• A)it would not make sense to use state fixed effect.
• B)you can test state fixed effects using homoskedastic-only standard errors.
• C)the OLS estimator will be biased.
• D)you should not use time fixed effects since beer taxes are the same at a point in time across states.

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Definitions:

Heart Attacks

A medical condition, also known as myocardial infarction, resulting from the blockage of blood flow to the heart muscle.

Investigating

The act of conducting a systematic inquiry or examination into a subject or phenomenon to discover facts or information.

Telephone Interview

A research or assessment method where questions are asked and answers are obtained via telephone, commonly used in surveys and job screening.

Data Collection

The process of gathering and measuring information on targeted variables in an established systematic fashion, enabling one to answer relevant questions and evaluate outcomes.