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Unformatted text preview: Economics 120B Name: _________________________ Professor Yongil Jeon Summer 2006 Student ID#: _________________________ Answer to Exam #1 – Summer 2006: Econometrics 120B 1a. (5 points) Analyzing the behavior of unemployment rates across 150 different countries in July of 2006 is an example of using a. time series data. b. panel data. c. crosssectional data. d. experimental data. Answer : c 1b. (5 points) The least squares procedure minimizes the sum of A) the residuals. B) squared maximum error. C) absolute errors. D) squared residuals. Answer: D 1c. (5 points) A residual is A) the difference between the mean of Y conditional on X and the unconditional mean. B) the difference between the mean of Y and its actual value. C) the difference between the regression prediction of Y and its actual value. D) the difference between the sum of squared errors before and after X is used to predict Y. Answer: C 1d. (5 points) Income is used to predict savings. For the regression equation Y = 1,000 + .10X, which of the following is true? A) Y is income, X is savings, and income is the independent variable. B) Y is income, X is savings, and savings is the independent variable. C) Y is savings, X is income, and savings is the independent variable. D) Y is savings, X is income, and income is the independent variable. Answer: D 2 Answer to EXAM #1, ECON 120B, Summer 2006 2 2. (5 points) A multiple regression includes two regressors: i i i i X X Y ε β β β + + + = 2 2 1 1 What is the expected change in i Y if i X 2 decreased by 5 unites and i X 1 is unchanged? And what is the expected change in i Y if i X 1 increases by 3 units and i X 2 decreased by 5 unites? Answer If i X 2 decreased by 5 unites and i X 1 is unchanged, then i Y is expected to change by 2 5 β − units. If i X 1 increases by 3 units and i X 2 decreased by 5 unites, then i Y is expected to change by 2 1 5 3 β β − units....
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This note was uploaded on 06/09/2010 for the course ECON 120B taught by Professor Jeon during the Spring '08 term at UCSD.
 Spring '08
 Jeon
 Econometrics, Unemployment

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