Econ375Homework2

Econ375Homework2 - ECON 375 Introduction to Econometrics...

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

View Full Document Right Arrow Icon
ECON 375: Introduction to Econometrics Spring 2010 Problem Set 2 Due: April 29, 2010, 9:00PM NOTE: All assignments must be typed if you can not write it legibly. Graphs and calculations may be handwritten. No late homework will be accepted. Exercise 1 (10 Points) Consider two unbiased independent estimators h β and t β , constructed to estimate the parameter β . Suppose you construct a third estimator β * that is a convex combination of h β and t β , that is, β * = α h β +(1 - α ) t β , with α [0 , 1]. (a) Is β * an unbiased estimator? (b) Find the variance of β * and express it in terms of the variance of h β and t β . (c) Assume that the sampling distributions of h β and t β are normal. Describe the sampling distribution of β * . (d) What value of α would you choose to calculate β * ? Justify your answer. Exercise 2 (10 Points)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Econ375Homework2 - ECON 375 Introduction to Econometrics...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online