Problem Set 1

Problem Set 1 - Problem Set 1 Economics 103 Winter 2009 Due...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Problem Set 1 Economics 103 Winter 2009 Due: Tuesday, January 20 Beginning of class Question 1: True, False, Explain. You are graded on your explanation. 1. The probability of an outcome is the number of times that the outcome occurs in the long run. 2. The expected value of a discrete random variable is the outcome that is most likely to occur. 3. Let Y be a random variable. Then var( Y ) equals [( )] Y EY μ . 4. Two random variables X and Y are independently distributed if . 5. The correlation between X and Y cannot be negative since variances are always positive. 6. To standardize a variable you add and subtract 1.96 times the standard deviation to the variable. 7. Assume that Y is normally distributed . Moving from the mean ( ) 1.64 standard deviations to the left and 1.64 standard deviations to the right, then the area under the normal p.d.f. is 0.05. 8. The sample average is a random variable and has a probability distribution that is the same as for the i.i.d. variables. 9. If two random variables have a correlation of zero, they are independent. 10. A probability density function tells the probability that a random variable is less than or equal to a certain value. 11. Econometric techniques allow us to establish a causal relationship between two variables. 12. An estimate and an estimator are the same thing. 13. Any linear combination of normally distributed random variables is F-distributed. () [( | ) ] E YE E Y X = 2 (, ) N μσ 1 ,..., n YY
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 14. The size of an 80 % confidence interval will not depend on the variance of the estimator used to generate the confidence interval. 15. An estimator is a formula that gives an efficient guess of the true population value.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Problem Set 1 - Problem Set 1 Economics 103 Winter 2009 Due...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online