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 noninteger 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 welldiversified portfolio is that the standard deviation of its return will typically be
smaller than that of a lessdiversified 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 “twosample ttest” is an example of a “nonparametric 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.
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 Spring '07
 Guggenberger
 Statistics, Normal Distribution, Standard Deviation, Statistical hypothesis testing

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