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# Test1 - Test 1 Thursday March 4 2010 Econ 3200 Introduction...

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Test 1 - Thursday, March 4 2010 Econ 3200 - Introduction to Econometrics Spring 2010 Cornell University Prof. Molinari This exam consists of TWO parts totaling 100 points. This is a CLOSED BOOK exam. However, useful formulas are provided on separate pages. Tables for the Normal, t , and ° 2 distributions are provided on separate pages. Calculators are permitted °but graphic calculators are prohibited. You have 75 minutes to complete the exam. SHOW ALL your work as partial credit will be given. Answers without explanations might NOT be given (full) credit even if they are correct. THINK before you answer, and GOOD LUCK! Part I: Short Answer (20 points, 4 points each) In a few sentences, brie±y de²ne/describe the following. Use formulas if you think they will make your answers more precise, but a formula without a written explanation is not an acceptable answer. 1. R 2 : 2. Explained Sum of Squares. 3. Mean Squared Error. 4. Interpreting the slope coe¢ cient of a linear regression. 5. Convergence in mean squared. 1

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Part II: 2 Long Questions, 80 Points (40 points each) 1. There has been a trend in college students³life style by which they tend to exercise more and more regularly. In fact, there has also been a growing interest among educators on whether the old Latin saying ´Mens sana in corpore sanoµ(which means ´A healthy mind in a healthy bodyµ) is true, and in particular on whether students who exercise regularly perform better academically. In order to better understand the relationship between physical exercise and academic performance, an Ivy League University collected the gym attendance records of 650 randomly chosen students. Using the gym³s records, the university computed the numbers of hours per week ( hours i ) each student in the sample spent in the gym. Using data on the GPAs of these 650 students, the following regression model estimates were obtained using OLS. (Standard errors for each estimate are given in parentheses.) G b PA i = 2 : 36 + 0 : 0768 hours i R 2 = 0 : 1958
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Test1 - Test 1 Thursday March 4 2010 Econ 3200 Introduction...

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