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Unformatted text preview: Economics 120B Name: _________________________ Professor Yongil Jeon May 3, 2005 Student ID#: _________________________ Exam 1 – Spring 2005: Econometrics 120B 1. (5 points) Studying inflation of France from 1970 to 2004 is an example of using a. randomized controlled experiments. b. time series data. c. panel data. d. cross-sectional data. Answer : b 2. (5 points) The reason why estimators have a sampling distribution is that a. economics is not a precise science. b. individuals respond differently to incentives. c. in real life you typically get to sample many times. d. the values of the explanatory variable and the error term differ across samples. Answer : d 2 Answer to EXAM #1, ECON 120B, Spring 2005 2 3. (35 points) For a sample of twenty monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return (X) of the S&P 500 index. The following information is available: 5 . 150 , 7 . 145 , 4 . 25 , 6 . 22 20 1 20 1 2 20 1 20 1 = = = = ∑ ∑ ∑ ∑ = = = = i i i i i i i i i y x x x y (a) (15 points) Estimate the coefficients of the linear regression of Y on X....
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