(a) Using what you know about running a regression model (i.e. theory) without an intercept, is it possible this suggestion would work? What would be some dangers to this approach?

(b) Using results from the data you are provided, show whether this suggestion actually works. Consider the results of the model with and without an intercept. Would you feel comfortable following this colleague’s suggestion? Explain why or why not.

Y X1
600 0
400 0
900 0
600 11
500 0
600 44
800 0
400 11
700 22
700 39
800 0
800 78
600 67
600 0
800 78
600 0
500 17
1100 33
900 0

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Regression and Econometrics Questions
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