Multiplying the dependent variable by 100 and the explanatory variable by 100,000 leaves the
A) OLS estimate of the slope the same.
B) OLS estimate of the intercept the same.
C) regression R2 the same.
D) variance of the OLS estimators the same.
Answer: C
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Compared to the 19th century, the population of the 20th century
(a) was largely urbanized. (b) was 3.7 times larger in number. (c) experienced a 63 percent increase in life expectancy at birth. (d) can be described by all of the above.
Alex was willing to pay $50 for the new World Cup soccer ball. When he received it as a gift, he was willing to sell it, but for no less than $80. According to behavioral economists:
A. Alex's behavior is consistent with the endowment effect. B. Alex's behavior is irrational because of inconsistent anchoring. C. Alex should sell the ball if he's offered any amount over $50. D. Alex's behavior is irrational because his frame has changed.