# hw3 - 73-261 Econometrics Homework 3 Inference I Due...

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73-261 Econometrics Fall 2010 Homework 3: Inference - I Due September 22, in class If you are submitting electronically, please submit an MS-Word or a PDF file. Excel files will not be accepted or graded anymore . Please report only what you were asked for, DO NOT submit or copy- paste the entire regression output. Presenting the results of statistical analysis is one of the skills that we want you to learn. Each submitted solution should include only the work of the people whose name(s) are written on the front page. If you want to study together but submit independently, you can discuss classroom and textbook material, but you cannot discuss or compare solutions to the problem set. Also, you cannot share any computer files or output related to the problem set. 1. (12 points) You have estimated the Cobb-Douglass production function: 2 1 β β L AK Y = , by running on OLS estimate on the equivalent representation: L K Y ln ln ln 2 1 0 β β β + + = where β 0 = ln A . Unfortunately, you computer was lost to the newest "Twitter spill" virus, and the

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