Stock and Watsons Introduction to Econometrics, 3rd Updated Edition
Documentation for Smoking Data
Smoking is a cross-sectional data set with observations on 10,000 indoor workers, which
is a subset of a 18,090-observation data set collected as part of th
1) Two Stage Least Squares is calculated as follows; in the first stage:
A) Y is regressed on the exogenous variables only. The predicted value of Y is then
regressed on the instrumental variables.
B) the unknown coefficients in the reduced form equation
1) In the binary dependent variable model, a predicted value of 0.6 means that
A) the most likely value the dependent variable will take on is 60 percent.
B) given the values for the explanatory variables, there is a 60 percent probability that the