This is the ninth in a series of lectures, which, if linked together in a textbook can be "Practical Regression." Goal score in addition to the theoretical content of most statistics texts with practical advice based on nearly three decades of experience of the author, in conjunction with more than one hundred years' experience of colleagues offered recommendations. As the title "Practical Regression" suggests, these notes guide performing the regression in practice. This note is returned to the theme of endogeneity, explaining how the predictor variables can be endogenous (and, therefore, its coefficient may be biased), if the cause is in doubt. With advanced training in the medical example, the note introduces the concept of instrumental variables (IV), provides an intuitive explanation of why the tools for solving the problem of causality, and explains how to evaluate the IV and two-stage least squares regression. The note describes the statistical tests for the validity of instruments. "Hide
by David Dranove Source: Kellogg School Management 11 pages. Publication Date: June 11, 2012. Prod. #: KEL643-PDF-ENG
Related Case Solutions & Analyses:
Jefferson County (C): Subsequent Issuance
Pemex (A): In a Free Fall
Putting the Relationship Back Into CRM
Brighter Smiles for the Masses–Colgate vs. P&G
Proteome Systems Limited: The First Five Years
Cleveland Twist Drill: Jim Bartlett Video
Supply Chain Optimization at Hugo Boss (A), Spanish Version
Walt Disney Company’s Sleeping Beauty Bonds
Western Asset Arbitrage
EnCana Corporation-The Cost of Capital
