Question

Choose the wrong statement regarding Figure 9.1 of Stock and Watson (the left graph on page 19 of Lecture Slides 7). a. The graph shows 220 data points (please do not count on the graph!). b. The scatter diagram shows some nonlinearity in the relationship between TestScore and District Income. c. The following R-code estimates the linear regression: > lm_robust(score4 ~ income, se_type = "HC1") d. The following R-code estimates the cubic regression: > lm_robust(score4 ~ income + income^2 + income^3, se_type = "HC1") e. The following R-code estimates the linear-log regression: > lm_robust(score4 ~ log(income), se_type = "HC1")

          Choose the wrong statement regarding Figure 9.1 of Stock and Watson (the left graph on page 19 of Lecture Slides 7).
a. The graph shows 220 data points (please do not count on the graph!).
b. The scatter diagram shows some nonlinearity in the relationship between TestScore and District Income.
c. The following R-code estimates the linear regression:
> lm_robust(score4 ~ income, se_type = "HC1")
d. The following R-code estimates the cubic regression:
> lm_robust(score4 ~ income + income^2 + income^3, se_type = "HC1")
e. The following R-code estimates the linear-log regression:
> lm_robust(score4 ~ log(income), se_type = "HC1")

Choose the wrong statement regarding Figure 9.1 of Stock and Watson (the left graph on page 19 of Lecture Slides 7).
a. The graph shows 220 data points (please do not count on the graph!).
b. The scatter diagram shows some nonlinearity in the relationship between TestScore and District Income.
c. The following R-code estimates the linear regression:
> lmrobust(score4 income, setype = "HC1")
d. The following R-code estimates the cubic regression:
> lmrobust(score4 income + income^2 + income^3, setype = "HC1")
e. The following R-code estimates the linear-log regression:
> lmrobust(score4 log(income), setype = "HC1")

Added by Jose R.

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