practice%20problems%201

# practice%20problems%201 - ECONOMETRICS Econ 322(01:220:322...

This preview shows pages 1–3. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ECONOMETRICS Econ 322 (01:220:322, Section 4) Department of Economics, Rutgers University Fall 2011 Practice Problems (based on appendix A, appendix B and chapter 2 of the textbook i.e. Simple Linear Regression Model) Question1 The accompanying table shows the joint distribution between the change of the unemployment rate (denoted as u) in an election year and the share of the candidate of the incumbent party since 1928. You think of this data as a population which you want to describe, rather than a sample from which you want to infer behavior of a larger population. Joint Distribution of Unemployment Rate Change and Incumbent Party’s Vote Share in Total Vote Cast for the Two Major-Party Candidates, 1928-2000 50% Incumbent ( Y ) 50% Incumbent ( 1 Y ) Total u ( X ) 0.053 0.211 u ( 1 X ) 0.579 0.157 Total (a) Compute and interpret ( ) E Y and ( ) E X . (b) Calculate and interpret ( | 1) E Y X and ( | 0) E Y X . (c) What is the probability that the unemployment rate decreases in an election year? (d) Conditional on the unemployment rate decreasing, what is the probability that an incumbent will lose the election? (e) Are the two random variables independent? Question 2: Let X be a random variable, distributed as Normal(5,4). Find the probabilities of the following events: (a) (¡ ¢ £) (b) (¡ ¤ ¥) (c)...
View Full Document

{[ snackBarMessage ]}

### Page1 / 5

practice%20problems%201 - ECONOMETRICS Econ 322(01:220:322...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online