1
ECON 1150
Fall 2010
Problem Set 1: Due 09/22/10
Please be sure that the pages are stapled together in the correct order.
Please write neatly.
Parts within each question receive equal weight.
1.
Suppose we are interested in explaining a relationship between salary and experience.
Let the work experience be measured in decades and the salary  in thousands of dollars.
Indicate whether you think each of the two statements below are true or false (write
TRUE or FALSE next to each of these statements).
(a) Consider individual 1 and individual 2. Individual 2 has 10 years of experience more
than individual 1. Then, the predicted salary for individual 2 will be
thousands of
dollars higher than that for individual 1.
Solution. TRUE.
(b)
approximates the average salary for an average experience of individuals.
Solution. FALSE.
2.
Indicate whether you think each of the two statements below are true or false (write
TRUE or FALSE next to each of these statements). The
,
,
and
have their
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Fall '08
 Staff
 Econometrics, Regression Analysis, Salary, work experience, unbiased estimator

Click to edit the document details