Mid1NOSOL2010

Mid1NOSOL2010 - ECON 139 Duke University Fall 2010 Midterm...

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Unformatted text preview: ECON 139 Duke University Fall 2010 Midterm 1 Name:................................................................ User ID:........................ Notes: 1. Use a calculator where necessary 2. On questions 1 and 2 you do not need to show working. You should show your working on the other questions. 3. Make use of the cheat sheet. If you take a formula from the cheat sheet you may want to write "(CS)" next to it so that it is clear to the grader where it comes from. 4. If you want to make any additional assumptions, please state them clearly. 5. Keep verbal answers concise (2-3 sentences should do). 5. There are 75 points in total. Questions 1 and 2 should take less than 1 minute per point. 6. The questions can be done in any order. The last question has the most proofs. DO NOT GET STUCK ON ONE QUESTION. 1 1 (5 points, deduct 2 points per wrong answer). Are the following statements: TRUE, FALSE or CAN&T TELL? NOTE: WORKING IS NOT REQUIRED FOR THIS QUESTION. (i) In a linear regression Y i = b + b 1 X i + u i , OLS is BLUE if the errors u i are normally distributed. TRUE / FALSE / CAN&T TELL (ii) A p-value indicates the probability that you will incorrectly fail to reject the null when the alternative hypothesis is correct. ... TRUE / FALSE / CAN&T TELL (iii) The existence of a large number of outliers in the data does not pose a problem for estimation by OLS as long as we believe that E ( u i j X i ) = 0 . TRUE / FALSE / CAN&T TELL 2 2(a). (8 points, deduct 2 for each wrong answer) You observe a simple random sample of iid observations ( i = 1 ;::::;n; so n is the sample size) on a random variable X that has mean & X and variance ¡ 2 X < 1 . X i refers to the i th observation in the sample. Which of the following are consistent estimators of & X ? Which are unbiased?...
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This note was uploaded on 08/03/2011 for the course ECON 139 taught by Professor Alessandrotarozzi during the Spring '08 term at Duke.

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Mid1NOSOL2010 - ECON 139 Duke University Fall 2010 Midterm...

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