A group of scientists wants to determine the efficacy of a vaccine. To do so they recruited 1000 subjects. Two months ago 300 random subjects received the vaccine T=1 . The other 700 received a placebo T=0 . The scientist also measured if the subjects became infected with the virus Y=1 or not Y=0 in the last 2 months. They plan to test the efficacy of the vaccine by running the following regression: Y=β0+β1T+u Which of the following statements is FALSE: Question 6Select one: a. This model will generate biased estimates because it does not control for many omitted variables b. The fact that more people receive the placebo than the vaccine will not generate bias c. Scientists do not need to observe the initial health status of the subjects to get unbiased estimates because the assignment of the vaccine was random d. A negative β1 would indicate that the vaccine is effective Question 7

H1: βj≠ 0, where βj is a regression coefficient associated with an explanatory variable, represents a one-sided alternative hypothesis.Question 3Select one:TrueFalse

We want to estimate the treatment effect of D on y via a linear regression model y equals b subscript 0 plus b subscript 1 x plus r D plus u, where x is an exogenous control variable. If the value of the treatment variable D is randomly assigned, then: a. the OLS estimate of r is unbiased. b. the OLS estimate of r is biased due to sample selection. c. the OLS estimator is BLUE. d. the error u is homoskedastic.

If the overall impact of deterministic part is less than the overall impact of random part in the regression equation then it means that the quality of predictions from such a regression will be efficient.a.Falseb.True

Consider the game theory model for a Drug Test. Player 1 is an athlete who chooses whether to use steroids or not. Player 2 is the official who decides whether to conduct a drug test on Player 1. Payoffs to players are presented below. Check Pass Dope -alpha, alpha 1, -1 Clean 0, -1 0, 0 Assume alpha > 1, which of the following statements is TRUE? If α increases, athletes will be more likely to dope and drug tests are less likely to be carried out If α decreases, athletes will be less likely to dope and drug tests are more likely to be carried out If α increases, athletes will be less likely to dope and drug tests are less likely to be carried out If α decreases, athletes will be less likely to dope and drug tests are less likely to be carried out

Among the following options identify the one which is false regarding regression.