One of the Following Is a Regression Example for Which

question 37

Multiple Choice

One of the following is a regression example for which Entity and Time Fixed Effects could be used: a study of the effect of

• A)minimum wages on teenage employment using annual data from the 48 contiguous states in 2006 .
• B)various performance statistics on the (log of)salaries of baseball pitchers in the American League and the National League in 2005 and 2006.
• C)inflation and inflationary expectations on unemployment rates in the United States, using quarterly data from 1960-2006.
• D)drinking alcohol on the GPA of 150 students at your university, controlling for incoming SAT scores.

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Definitions:

Population Variance

A measure that quantifies how much the values in a population deviate from the mean of the population.

Profit Margin

The financial metric that calculates the percentage of revenue that exceeds the costs of producing that revenue, indicating the profitability.

Investment

The assignment of capital with the intention of creating earnings or profit.

F-distribution

A probability distribution used in analysis of variance (ANOVA), for comparing the variances of different populations.