Question
What is the term used when explanatory variable
is correlated with the error term?Solution
Endogeneity occurs when a predictor variable (x) in a regression model is correlated with the error term (e) in the model. This can occur under a variety of conditions, but two cases are especially common in inequality research: (1) when important variables are omitted from the model (called “omitted variable bias”) and (2) when the outcome variable is a predictor of x and not simply a response to x (called “simultaneity bias”)
56. 23Â Â Â Â Â 45Â Â Â Â Â 89Â Â Â Â Â 177Â Â Â Â Â 363Â Â Â Â Â 705
...625, 5, 125, 25, 25, ? , 5
There are three series given below which are following with the same pattern.
Series I: 9, 10, 32, 163, 1145
Series II: 4, B, C, D, E
...5 14 56 220 1125 6786
...2,0, 9, 20, ‘?’, 714
7 29 ? 129 211 349
25Â Â Â Â Â Â Â Â Â Â 34Â Â Â Â Â Â Â Â Â Â 61Â Â Â Â Â Â Â Â Â Â 106Â Â Â Â Â Â Â Â 169Â Â Â Â Â Â Â Â ?
...9 10 6 15 -1 ?
...22   39    58    81   ?      141
The question below is based on the given series I. The series I satisfy a certain pattern, follow the same pattern in series II and answer the questions...
