True or False: Besides being necessary to provide unbiased estimates, an intercept is always a meaningful/interpretable...

True or False: Besides being necessary to provide unbiased estimates, an intercept is always a meaningful/interpretable parameter. Explain.

Expert Solution

FALSE

Having an intercept term in the regression equation helps in giving unbiased estimates.
However, it is not necesaary that everytime intercept term is useful.
Removing an insignificant intercept term can increase R square.
Sometimes, the model is best fit by regression through origin when the theory suggests that regression line must pass through point (0,0).
For example, our independent variable is reading ability and dependent variable is writing ability. Having a constant term here in the regression equation will suggest that having a reading ability of zero, person will have a writing ability equal to the constant value which makes no sense as with zero reading ability, person can not have a wriring ability. Hence, intercept term is always not signifiacnt.
Apart from this, Dropping intercept will reduce the degree of freedom by one and if sample is very large, it gets very useful.

Rahul Sunny answered 1 year ago

Indicate whether the following statements are always true or can be false. True False If an object's...

Indicate whether the following statements are always true or can be false. True False If an object's speed does not change, no net force is acting on the object. True False If two objects are under the influence of equal forces, they have the same acceleration. True False The net force which acts on an object which maintains a constant velocity is zero. True False An object's velocity will change if a net force acts on the object. True False A truck initially moving at...

Select True or False True False 1. Conclusions and estimates about a population based on sample...

Select True or False True False 1. Conclusions and estimates about a population based on sample data are not always going to be correct. For this reason measures of reliability, such a significance level and confidence level, should be built into the statistical inference. True False 2. The confidence level is the proportion of times that an estimating procedure will be wrong. True False 3. Statistical inference is the process of making an estimate, prediction, or decision about a population...

Indicate whether the following statements are always true or can be false. (Select T-True, F-False. If...

Indicate whether the following statements are always true or can be false. (Select T-True, F-False. If the first is F and the rest T, enter FTTTTT). A) In order not to slow down, a bicycle moving at a constant velocity needs a small net force applied. B) If two objects have the same acceleration, they are under the influence of equal forces. C) If a net force acts on an object, the object's velocity will change. D) During the collision...

True or False, The y-intercept in the linear regression equation describes the average outcome of y...

True or False, The y-intercept in the linear regression equation describes the average outcome of y when x = 1. True or false, The slope in the linear regression equation describes the estimated difference in the y-variable if the explanatory variable x for a case happened to be one unit larger. True or false, If the 95% confidence interval for the population slope is given by 0.22 to 0.33, then the sample slope is 0.275. As one increases the sample...

Indicate whether True, False, or Uncertain. Then provide a brief statement indicating WHY true or false,...

Indicate whether True, False, or Uncertain. Then provide a brief statement indicating WHY true or false, or if the statement is ambiguous, what would need to be altered to the statement to make it clearly true or false. a) Publicly provided insurance may crowd out the purchases of those who would pay for private insurance. b) The existence of moral hazard provides an argument for both market failure and government failure in insurance markets. c) If there were no free-riding,...

Determine which of the following statements are true and which are false. (a) There always exist...

Determine which of the following statements are true and which are false. (a) There always exist a Pareto efficient alternative. (b) There always exist a Pareto dominated alternative. (c) The best alternative according to Rawlsian Justice is always Pareto efficient. (d) The best alternative according to Borda rule is always Pareto efficient.

TRUE OR FALSE-Law in Obligation and Contracts The period in an obligation always refers to the...

TRUE OR FALSE-Law in Obligation and Contracts The period in an obligation always refers to the future. If the debtor fails to perform an obligation to sing, the creditor may compel the debtor to comply with the obligation. If the obligation consists in the delivery of a determinate thing, the debtor who incurs in delay shall not be responsible for loss due to fortuitous event. In an obligation to give a determinate thing which is subject to a suspensive...

A price floor will always generate a deadweight loss. True or False and explanation.

Answer True or False for each of the following. If your answer is FALSE, provide an...

Answer True or False for each of the following. If your answer is FALSE, provide an example that proves your point. If your answer is true, explain. Given a typical set of numerical data with an ODD number of values. 1. The mean is always one of the data values. 2. The median is always one of the data values 3. The mode is always one of the data values. 4. The range measures the variability of the given data...

1. Determine each of the following is true or false? If false, provide a counterexample. (a)...

1. Determine each of the following is true or false? If false, provide a counterexample. (a) Let X be a continuous random variable which has the pdf fX. Then, for each x, 0 ≤ fX(x) ≤ 1. (b) Any two independent random variables have ρXY = 0. (c) Let X and Y be random variables such that E[XY ] = E[X]E[Y ]. Then, X and Y are independent. 2. Ann plays a game with Bob. Ann draws a number X1...

Question