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Mehmet Soytas
Applied Econometrics I, Summer, 2009
Wednesday, May 13, 2009
(due: Monday, May 18, 2009)
Homework Assignment 1
E
(
u
i
j
X
i
) = 0
, implies that
E
(
Y
i
j
X
i
) =
&
0
+
1
X
i
.
2. Write down the expressions for the
R
2
for the regression of
Y
on
X
and then
X
on
Y
. Compare them.
3. Go to the web address http://wps.aw.com/aw_stock_ie_2/50/13016/3332253.cw/index.html. Down
load the data "California Test Score Data Used in Chapters 49".
Replicate the regression result we saw in the lecture. Basically run a regression of testscr on str
Calculate the e±ect of reducing str by 2 on the test score by using the predicted regression result.
Conduct a hypothesis test on the coe¢ cient
^
&
0
where the null hypothesis is;
H
0
:
^
&
0
= 690
Conduct a hypothesis test on the coe¢ cient
^
1
where the null hypothesis is;
H
0
:
^
1
= 0
Construct
%95
and
%99
Conduct a hypothesis test on the coe¢ cient
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This note was uploaded on 07/02/2009 for the course ECON 1150 taught by Professor Staff during the Summer '08 term at Pittsburgh.
 Summer '08
 Staff
 Econometrics

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