{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Homework1

# Homework1 - Mehmet Soytas Wednesday Applied Econometrics I...

This preview shows pages 1–2. Sign up to view the full content.

Mehmet Soytas Applied Econometrics I, Summer, 2009 Wednesday, May 13, 2009 (due: Monday, May 18, 2009) Homework Assignment 1 1. Show that the °rst least squares assumption , 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 4-9". ° 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 con°dence intervals for this hypothesis. Comment. ° Conduct a hypothesis test on the coe¢ cient ^ ° 1 where the null hypothesis is; H 0 : ^ ° 1 = ± 2 : 0 °

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern