tutorials10s2ie - 1 School of Economics Introductory...

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Unformatted text preview: 1 School of Economics Introductory Econometrics ECON2206/ECON3290 Tutorial Program Session 2, 2010 Assignment 1 is on page 4. Assignment 2 is on page 11. 2 Week 2 Tutorial Exercises Readings • Read Chapter 1 thoroughly. • Make sure that you know the meanings of the Key Terms at the chapter end. Problem Set (these will be discussed in tutorial classes) • Q1. Wooldridge 1.1 • Q2. Wooldridge 1.2 • Q3. Wooldridge C1.3 • Q4. Wooldridge C1.4 (These are selected from the end-of-chapter Problems and Computer Exercises.) Computer Exercise and STATA Hints • All data files and data description files are in the course website, suffixed with “ .raw ” and “ .des ” respectively. Sometimes, data files may have a “ .txt ” or “ .csv ” suffix. You must read the description files always! • Example STATA do-files, are also posted in the course website, suffixed with “ .do ”. The solution do-files will be posted with one week delay. • One of the course objectives is to learn to use STATA. • To complete Q3 and Q4, you should follow the steps below. o Step 1. Create a work folder, say F:\ie , on your USB drive or your computer. o Step 2. Download data and description files to the work folder. o Step 3. Follow the instructions in Slides01 or Guide4 STATA (both on the website) to run bwght_1st.do and read the output carefully. o Step 4. Make sure that you understand the effect of each command in bwght_1st.do . o Step 5. Modify bwght_1st.do to complete Q3 and Q4. 3 Week 3 Tutorial Exercises Readings • Read Chapter 2 thoroughly. • Make sure that you know the meanings of the Key Terms at the chapter end. Review Questions (these may or may not be discussed in tutorial classes) • The minimum requirement for OLS to be carried out for the data set {( x i , y i ), i=1,…, n } with the sample size n > 2 is that the sample variance of x is positive. In what circumstances is the sample variance of x zero? • The OLS estimation of the simple regression model has the following properties: a) the sum of the residuals is zero; b) the sample covariance of the residuals and x is zero. Why? How would you relate them to the “least squares” principle? • Convince yourself that the point ) , ( y x , the sample means of x and y , is on the sample regression function (SRF), which is a straight line. • How do you know that SST = SSE + SSR is true? • Which of the following models is (are) nonlinear model(s)? a) sales = β /[1 + exp(- β 1 ad_expenditure)] + u; b) sales = β + β 1 log(ad_expenditure) + u; c) sales = β + β 1 exp(ad_expenditure) + u; d) sales = exp(β + β 1 ad_expenditure + u). • Can you follow the proofs of Theorems 2.1-2.3?...
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This note was uploaded on 06/07/2011 for the course ECON 101 taught by Professor Mrsmith during the Three '11 term at University of Sydney.

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tutorials10s2ie - 1 School of Economics Introductory...

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