2009_Econometrics_Tut5

2009_Econometrics_Tut5 - Econometrics (ECON0701) School of...

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Econometrics (ECON0701) School of Economics & Finance, University of Hong Kong First semester, 2009-2010 Tutorial Exercise 5 (Teaching week starting from 19 October): Please be well prepared to answer the following questions. 1. Suppose that the log of salaries of Premier League football players ( l _ salary ) are related to years in the Premier League ( years ) and average games played per year ( gamesyr ) according to the following multiple regression model: l _ salary = β 0 + β 1 years + β 2 gamesyr + ε , (1) where ε is the random error term, and the usual assumptions hold. (a) Give an economic interpretation of the coe cient β 2 in Equation (1). (b) Based on a sample of 353 observations, the estimation results (except for the intercept term) are given by: Variable Estimate Standard Error t -statistic years 0 . 0713 0 . 0125 (i) gamesyr (ii) 0 . 0013 15 . 0234 with standard deviation of dependent variable =1 . 1823 , and S.E. of regression =0 . 7527 . Fill in the missing terms (i) to (ii) in the regression output. Show your steps.
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2009_Econometrics_Tut5 - Econometrics (ECON0701) School of...

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