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Unformatted text preview: 1 ) ˆ ( 1 E n Y V V * 12 1 ) ( ) ˆ ( 1 = = Then, as n goes to infinity we have that bias is zero and variance goes to zero. 4 . The state of Illinois wishes to establish a 95% confidence interval for the standard deviation of personal consumption expenditures in the state. They have a sample of 30 observations and find that: Σ (Y – Y ) 2 = 200. a) (4) Do you need to make any additional assumption? If so, what? Yes. We should assume that the population has normal distribution b) (10) Construct the confidence interval. s 2 = 200 / (n-1) = 200 / 29 = 6.9 16.0471 < [(29 * 6.9) / σ 2 ]< 45.72 4.374 < σ2 < 12.46 2.091 < σ < 3.5298 2...
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This note was uploaded on 04/13/2011 for the course ECON 506 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.
- Fall '08