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ieTutorials2011s1

# ieTutorials2011s1 - School of Economics ECON2206/ECON3290...

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1 School of Economics Introductory Econometrics ECON2206/ECON3290 Tutorial Program Session 1, 2011 Assignment 1 is on page 5. Assignment 2 is on page 12.

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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 0 /[1 + exp(- β 1 ad_expenditure)] + u; b) sales = β 0 + β 1 log(ad_expenditure) + u; c) sales = β 0 + β 1 exp(ad_expenditure) + u; d) sales = exp(β 0 + β 1 ad_expenditure + u). Can you follow the proofs of Theorems 2.1-2.3? Problem Set (these will be discussed in tutorial classes) Q1. Wooldridge 2.4 Q2. Wooldridge 2.7 Q3. Wooldridge C2.6 Q4. Wooldridge C2.7 (not in 3rd edition)

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