Explain what is meant by specification bias. What effects does specification bias have on the results of a regression?
What will be an ideal response?
Specification bias refers to including irrelevant variables, omitting relevant variables, or using improper functional form. This may lead to improper applications and interpretations of hypothesis tests.
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An extraordinary loss of $250,000 that results in income tax savings of $60,000 should be reported as an extraordinary loss (net of tax) of $190,000 on the income statement
Indicate whether the statement is true or false
Adding together all 12-month cumulative income and expense variances should equal
A) zero. B) actual savings (or dissavings). C) planned savings (or dissavings). D) the difference between planned saving and actual saving.
Use the project described in the table to determine the total resources required for this project during week 2 if a worker is expected to devote half-time (four hours per day) to this project
Assume that the project work is conducted on a 5-day-per-week basis. Activity Duration Predecessor A 5 days -- B 4 days A C 5 days A D 6 days B E 6 days C, D F 6 days E A) 30 hours B) 20 hours C) 40 hours D) 36 hours
The Times-Picayune is searching for an ideal spotting station for the morning paper. Neighborhoods, their location on an XY grid of the city, and morning volume are shown in the table
What is the location that will minimize the transportation costs for the newspaper? Customer Annual Volume X-Coordinate Y-Coordinate Florida 7 3 7 Desire 39 7 5 Lafitte 245 1 3 Iberville 116 2 5 Guste 55 1 6 CJ Peete 284 1 4 What will be an ideal response?