ps1 - Source J Mullahy(1997 “Instrumental-Variable...

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Professor Tanya Molodtsova ECON 420 Office: Rich 319 Econometrics E-mail: [email protected] Fall 2011 Problem Set 1 Due Date: Thursday, September 8 1. (1 point) Provide one example of each type of data (not from the book or lecture notes): a) cross-sectional data b) panel data c) time series data 2. (3 points) Let X be a discrete random variable characterized with the following probability distribution: X 0 1 2 3 4 P(x) 0.4 0.20 0.20 0.10 0.10 a) Calculate expected value, E(X). b) Calculate variance, var(X). c) Calculate standard deviation, sd(X). 3. (1 point) How would you interpret a sample correlation coefficient of 1? 4. (5 points) Do question C1.2 in Wooldridge book. Download the file BWGHT.XLS on Blackboard to answer this question. Data Description
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Unformatted text preview: Source: J. Mullahy (1997), “Instrumental-Variable Estimation of Count Data Models: Applications to Models of Cigarette Smoking Behavior,” Review of Economics and Statistics 79, 596-593. Professor Mullahy kindly provided the data. He obtained them from the 1988 National Health Interview Survey. Used in Text: pages 18, 62, 110, 150-151, 164, 176, 182, 184-187, 255-256, 515-516 1. faminc 1988 family income, $1000s 2. cigtax cig. tax in home state, 1988 3. cigprice cig. price in home state, 1988 4. bwght birth weight, ounces 5. fatheduc father's yrs of educ 6. motheduc mother's yrs of educ 7. parity birth order of child 8. male =1 if male child 9. white =1 if white 10. cigs cigs smked per day while preg 11. bwghtlbs birth weight, pounds 12. packs packs smked per day while preg...
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