In a regression model, if variance of the dependent variable, y, conditional on an explanatory variable, x, or Var(y|x), is not constant, _____.
A. the t statistics are invalid and confidence intervals are valid for small sample sizes
B. the t statistics are valid and confidence intervals are invalid for small sample sizes
C. the t statistics and the confidence intervals are valid no matter how large the sample size is
D. the t statistics and the confidence intervals are both invalid no matter how large the sample size is
Answer: D
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Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$.50Friendly Groceries$4.00$2.50If the corn was grown and the jar of popcorn produced in the year 2015, but the jar was sold at Friendly Groceries in the year 2016, what is the contribution of these transactions to GDP in the year 2016?
A. $0.50 B. $4.00 C. $1.50 D. $0.00
Your marginal utility of a third waffle is 10 and your marginal utility of a second piece of ham is 30 . If you eat the third waffle, which of the following must be true?
a. You are irrational. b. You prefer waffles. c. The price of a waffle is less than one third the price of a piece of ham. d. The price of a waffle is more than the price of a piece of ham. e. The price of a waffle is three times the price of a piece of ham.
A monopolist that is earning economic losses will, in the long run,
a. exit the industry. b. shift it's demand curve rightward. c. stay in the industry, since eventually the price will have to rise. d. encourage competitors to enter the industry in order to enliven it.
Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. As you increase your production of t-shirts, your average fixed cost ________ and your marginal cost ________.
A. decreases; increases B. increases; decreases C. stays the same; increases D. decreases; stays the same