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Unformatted text preview: a. Find the method of moment estimator of . Solution: 1 ) ( 1 + = = dy y Y E . Therefore: Y Y Y= + = 1 1 b. Show that Y is a consistent estimator of 1 + . Solution: 1 ) ( ) ( + = = Y E Y E = = n Y V n Y V Y V as ) ( lim ) ( ) ( 5. Y i are independent, identically distributed from a normal distribution. In our sample we find n = 19; 10 = Y , S 2 = 49 a. Construct a 95% confidence interval for the mean. Solution: S = 7. 95% CI is: n S t Y 18 025 . 10 2.101 (7/18) 10 3.47 [6.53, 13.47] b. Construct a 90% confidence interval for 2 . Solution: 39046 . 9 , 8693 . 28 2 95 . 2 05 . = = 90% CI is [ ] 39046 . 9 ) 49 )( 18 ( , 8693 . 28 ) 49 )( 18 ( [30.55, 93.93] 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
 Staff

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