Consider Model 1 in Table 6. The dependent variable is “% increase in number of private sector employees (2001-2006)” and the independent variable is “Local university presence”. What type of association does this show between the dependent and independent variables?

Question

BlackTom AI · Accepted Answer

The prompt asks us to assess the nature of the relationship between two variables: the dependent variable is the percentage increase in the number of private sector employees from 2001 to 2006, and the independent variable is local university presence. 
Option 1: Positive. If higher local university presence is associated with a larger percentage increase in private sector employment, this indicates a positive association where both variables move in the same direction.
Option 2: No association. Claiming no relationship would mean the level of local university presence does not predict changes in private sector employment. Unless the data show no systematic pattern or correlation, this is unlikely when the question explicitly asks about the type of association in Model 1.
Option 3: Logarithmic. A logarithmic relationship implies the effect changes in a curve that slows or accelerates with the level of university presence, typically described by a log function. Without information about a diminishing or accelerating rate of increase, labeling the relationship as logarithmic would require specific functional form evidence, which isn’t provided here.
Option 4: Negative. A negative association would mean greater local university presence is linked to a smaller percentage increase (or a decrease) in private sector employment. This would contradict the stated direction of impact implied by a standard interpretation of the model unless the data show such an inverse pattern, which is not indicated by the simple question.
In summary, given the context and typical interpretation of the model described, the most straightforward and commonly reported relationship is a positive association, where larger local university presence corresponds to greater percentage growth in private sector employment. The other options either assert no relationship, a nonlinear logarithmic form, or a negative relationship, each requiring specific patterns in the data that are not implied by the question as stated.

ECON1272 Quiz 2 - Basic Econometrics

Consider Model 1 in Table 6. The dependent variable is “% increase in number of private sector employees (2001-2006)” and the independent variable is “Local university presence”. What type of association does this show between the dependent and independent variables?

View Explanation

Log in for full answers

Similar Questions

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

The break-even point is that at which:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler