ECON
120PS!A

# 120PS!A - Problem Set 1 Answer Key Econometrics 120A 1(a...

• Notes
• 2

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

Problem Set 1 Answer Key - Econometrics 120A 1. (a) Using the AVERAGE function in Excel we get 0.84 for the mean of GDP growth. Using the MEDIAN function in Excel we get 0.79 for GDP growth. (b) Since the mean is higher than the median, the distribution seems to be skewed to the right. (c) Using the VAR function in Excel we find the standard deviation ( s 2 ) to be 0.978 for GDP growth. To find the mean squared deviation (MSD), we can use the fact that MSD 2 = n n - 1 s 2 = 0 . 974, which implies MSD = 0 . 974. The MSD and s 2 are close to each other because the sample size is large. Since the numbers are practically the same, it does not matter which one we use. (d) The Standard Deviation gives us an idea of how variable growth is (the spread), while the mean and median only tell us what “typical” growth is. (e) Histogram (as presented in class) 2. This can be explained if Paul Samuelson’s IQ is higher than that of the average economist, but lower than that of the average Physicist.

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

This is the end of the preview. Sign up to access the rest of the document.
• Summer '08
• Jeyeon

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern