Part I (4 pts each, 6 points for Question 10) For this secti…

Questions

Pаrt I (4 pts eаch, 6 pоints fоr Questiоn 10) For this section, we will be using dаta on countries and their medal counts in the Winter Olympics from 1980 to 2014. The codebook for this data is on the last page of this exam. The data is similar to the data used in Problem Set 1. Use the following output to answer questions 1 through 11. Suppose you run the regression  only for those countries participated in the Olympics from 1980 to 2014.  1) What would be the STATA command for the above model?   2) Please interpret the coefficient on GDP and its statistical significance.   3) Using the above output, what is your best guess for how many medals a country that participates in the Winter Olympics will win with a GDP of $20,000?   4) Suppose GDP was measured in $1,000 US dollars per person. How would the coefficient on GDP change? Explain.   5) Using the above output, calculate A to the second decimal place and explain what it means.   6) Using the above output, calculate B to the second decimal place.   7) Using the above output, calculate C to the second decimal place and explain what it means.   8) Suppose you are worried about making too much of the above model because you are concerned about omitted variable bias. Your friend tells you of her favorite test for omitted variable bias Get the residual of the model Regress it on x (in this case GDP) If the R2 is pretty low, then there probably isn’t any omitted variable bias Explain what omitted variable bias means and evaluate your friend’s test.   9) Suppose I ran the same equation ----  again  but this time for the entire sample (including those countries that did not participate). In general, the poorer countries are those who don’t participate. Compare your OLS estimates for   (using >,

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