Economics 120B
Fall 2007
Dr. Maria Cândido
Student Name:_____________________________________
Student ID:________________________________________
Economics 120B Final Examination
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 – multiplechoice questions (Part I) and longer questions
(Part II). You do not need to justify your answers for the multiplechoice 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
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View Full DocumentEconomics 120B
Fall 2007
Dr. Maria Cândido
PART I: MultipleChoice 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 onesided test (e.g,. pvalue is less than 1%)
a.
indicates evidence in favor of the null hypothesis.
b.
implies that the tstatistic 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
ˆ
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.
c.
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 Winter '08
 Jeon
 Economics, Microeconomics, Linear Regression, Regression Analysis, Dr. Maria Cândido

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