11 - Chapter 2, Exercise Solutions, Principles of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2, Exercise Solutions, Principles of Econometrics, 3e 11 EXERCISE 2.7 (a) Since 2 2 ˆ ˆ 2.04672 2 i e N σ= = it follows that 2 ˆ 2.04672( 2) 2.04672 49 100.29 i eN =− = × = (b) The standard error for 2 b is n 22 se( ) var( ) 0.00098 0.031305 bb == = Also, n 2 2 2 ˆ var( ) () i b x x σ = Thus, n 2 2 2 ˆ 2.04672 2088.5 0.00098 var i xx b σ −= = = (c) The value 2 0.18 b = suggests that a 1% increase in the percentage of males 18 years or older who are high school graduates will lead to an increase of $180 in the mean income
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/23/2011 for the course ECON MPBE taught by Professor Jansveceny during the Spring '11 term at Metropolitní Univerzita Praha.

Ask a homework question - tutors are online