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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.


Definitions:

Sensitivity

The ability to perceive and respond to differences in the environment or in one's own internal states.

Smell

is one of the five senses, pertaining to the ability to detect and identify scents or odors.

Cardiovascular Systems

Pertains to the system comprising the heart and blood vessels, responsible for circulating blood throughout the body.

Respiratory Systems

The organs and structures that facilitate gas exchange, allowing organisms to breathe and process oxygen.

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