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denis23 [38]
3 years ago
8

Labor economists often study the returns on investment in education (see, e.g., Card 1999). Suppose we have data on salaries of

a set of people, some of whom went to college and some who did not. A simple model linking education to salary is:
Salaryᵢ = β₀ + β₁ College graduateᵢ + ϵᵢ
, where the value of Salaryᵢ, is the salary of person i and the value of College graduateᵢ; is 1 if a person i graduated from college and 0 if a person i did not.
(a) What does β₀ mean? What does β₁ mean?
(b) What is in the error term?
(c) What are the conditions for the independent variable X to be endogenous?
(d) Is the independent variable likely to be endogenous? Why or why not?
(e) Explain how endogeneity could lead to incorrect inferences.
Business
1 answer:
stira [4]3 years ago
5 0

Answer:

a. The intercept terms beta0 depicts the minimum amount of salary that a person will be earning if the person is not a college graduate. beta1 depicts that if a person is a college graduate, then the salary of the person increases by \beta 1 units.

b. The error term include all other variables impacting salary of the person other than the the person being a college graduate.

c. The independent variable X will be endogenous when salary plays an important role in determination of whether a person is college graduate.

d. yes, independent variable can be endogenous in some cases when dependent variable Y is impacting the independent variable X.

e. Endogeneity can lead to relaxation of one of the important assumption of Ordinary Least Squares (OLS) which considers independent variable to be endogenous. This will lead to the problem of multi collinearity. The Simultaneous Equation model can be used in this case rather than OLS model.

Explanation:

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A client with a peptic ulcer is diagnosed with Helicobacter pylori infection. The nurse is teaching the client about the medicat
salantis [7]

Answer:

It is the answer C. "The medications will kill the bacteria and stop the acid production."

Explanation:

It is important to know that the most commonly used therapy for peptic ulcers is a combination of antibiotics, proton-pump inhibitors, and bismuth salts that suppress or eradicate H. This treatment to stop the acid recommend metronidazole, omeprazole and clarithromycin.

6 0
4 years ago
Which food give the most fiber
Marina86 [1]
Hello!

The most accurate answer is

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3 0
4 years ago
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You just received a bonus at your job of $4,000 which you decide to put in a savings account at the local bank. Assume that bank
Rama09 [41]

Answer:

$22,222.22

$57,142.86

INCREASES

Explanation:

Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.

If $4000 is deposited and reserve requirement is 18%

reserves would increase by $4000 x 0.18 = 4720

Increase in the total value of checkable deposit is determined by the money multiplier

Money multiplier = amount deposited / reserve requirement

$4000 / 0.18 = $22,222.22

$4000 / 0.07 = $57,142.86

It can be seen that the higher the reserve requirement, the lower the increase in the total value of checkable deposit

4 0
3 years ago
Statements made by an insured on an accident and health insurance application are considered to be?
amm1812

Statements made by an insured on an accident and health insurance application are considered to be representations.

Insurance is a form of risk management, and provides protection from risks arising due to financial losses, health issues, accidents, and other unpredictable events.

An entity provides this insurance service, and is called the insurer. The person who buys this insurance policy is called the insured or policyholder. The payment made by the policyholder is the premium. If the specified loss occurs, the insurer will compensate the policyholder with a given amount of financial payment.

The statements that the policyholder on accident and health insurance applications are called representation. If false information is provided, the insurer can legally void the contract.

To learn more about representations in insurance: brainly.com/question/15260186

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5 0
2 years ago
An important economic problem associated with monopolies is that, at the profit-maximizing equilibrium rate of output, resources
Andrew [12]

Answer:

D

Explanation:

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

Because the demand curve for a monopoly is downward sloping, marginal revenue is less than price. As prices fall, more units of the product are bought.

In a monopoly When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses.

7 0
3 years ago
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