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Unformatted text preview: Economics 120B Fall 2007 Dr. Maria Cndido Student Name:_____________________________________ Student ID:________________________________________ Economics 120B Final Examination Answer Key Fall Quarter December 13 th , 2007 Instructions: a. You have 180 minutes to finish your exam. Write your name and ID number on the upper left corner of this page. b. Confirm that your test has 12 pages. Make sure you find the formula sheet, as well as critical values tables, in the pages of your exam. The last page can be used as scratch paper. c. There are two parts to this exam multiple-choice questions (Part I) and longer questions (Part II). You do not need to justify your answers for the multiple-choice questions. Show ALL your work for the longer questions. d. Use a pen to write your answers. You give up your right to a regrade if you choose to use a pencil. e. The table below indicates how points will be allocated on the exam. You can answer the questions in any order you like. Use your time carefully and efficiently. Question Points Part I 24 Part II 1. 20 2. 12 3. 5 4. 5 5 18 6 8 7 8 Exam Total 100 f. With you, you should only have a pen, and a calculator. g. You will NOT be allowed to leave the room during the exam. Turn off your cell phone and your IPod, and good luck! 1 Economics 120B Fall 2007 Dr. Maria Cndido PART I: Multiple-Choice Questions (1.5 points each, 24 points total) 1) Which of the following can cause the OLS estimators to be biased? a. Heteroskedasticity. b. Leaving out a variable that is important (and correlated with one included variable). c. A sample correlation coefficient of 0.95 between two independent variables both included in the model. d. Including an irrelevant variable. 2) In the presence of heteroskedasticity, and assuming that the usual least squares assumptions hold, the OLS estimator is a. efficient. b. BLUE. c. unbiased and consistent. d. unbiased but not consistent. 3) Finding a small value of the p-value for a one-sided test (e.g,. p-value is less than 1%) a. indicates evidence in favor of the null hypothesis. b. implies that the t-statistic is less (in absolute value) than 2.33. c. will only happen roughly one in 100 samples. d. indicates evidence against the null hypothesis. 4) Imagine that you were told that the t-statistic for the slope coefficient of the regression line was 4.38. What are the units of measurement for the t-statistic? STR core S Test = 28 . 2 9 . 698 a. points of the test score b. number of students per teacher c. STR TestScore d. standard deviations 5) The overall regression F-statistic tests the null hypothesis that a. all slope coefficients are zero. b. all slope coefficients and the intercept are zero....
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