EC 41, UCLA Spring 2009
Name (print)________________________________
Final Exam - Version A
– 6/8/09
I 9 fixed
TA: Name__________________________ & Section Time_____________
- Only pens, pencils and erasers may be used, this is a closed book, closed note, exam.
- Students may use a calculator, but nothing that can access the internet.
- Write non-integer answers to 3 significant digits, e.g., 333, or 3.33 or .0333
- This exam consists of 20 True/False (20 points), 10 short answer (30 points) and 10 longer questions (50 points)
- Clearly write answers on this exam.
No points are awarded for illegible answers.
- Be prepared to show a photo ID during the exam (e.g., UCLA ID)
- You may leave when finished.
Do not disrupt those still taking the exam.
I. Circle T for True or F for False (1 point each)
1)
T or F
Flatland is divided into three regions: West, Central, and East.
If the unemployment rate in the three
regions is 3%, 6%, and 12% respectively, then the unemployment rate in all Flatland is 7%
2)
T or F
Evaluated at
x
x
=
*
the standard error of the “estimated mean response for the subpopulation,
μ
ˆ ” is smaller
than the “prediction interval for a future observation
y
ˆ .”
3)
T or F
A larger regression slope estimate may be less statistically significant than a smaller slope estimate.
4)
T or F
The primary benefit of a well-diversified portfolio is that the standard deviation of its return will typically be
smaller than that of a less-diversified portfolio.
5) T or F
Rejecting Ho when
α
= .05 provides stronger evidence against Ho than rejecting Ho when
α
= .01
6) T or F
If two assets have identical mean returns and identical standard deviations, it is still possible to benefit by
forming a portfolio with both assets, rather then just investing in one of the assets.
7) T or F
A 95% confidence interval means that percentage of intervals calculated using this method which contain
the true population mean will approach 95% as more and more intervals are calculated.
8) T or F
When calculating 95% confidence intervals with a given known population standard deviation and different
samples of the same size, the intervals will differ, but their size (or width) will be identical.
9) T or F
A particular
X
> μ
0
may reject
H
0
: μ=0 against
H
a
: μ
≠
0; but not against
H
a
: μ >0.
10) T or F
A “two-sample t-test” is an example of a “non-parametric test.”
11) T or F
In the demand for murder example, cross section data for the U.S. suggested that increased use of capital
punishment would reduce murders per capita.
12) T or F
Data from a back to back stemplot can be used to perform a regression
13) T or F
In a standard OLS regression of Y on X, we assume X is measured without error but that there may be errors
in the measurement of Y.
14) T or F
An event A and its complement (A
C
) can not be independent if P(A) is not equal to zero or one.
15) T or F
Each
statistic
has one true value, but each
parameter
has a distribution of possible values.