34 - Chapter 3 Exercise Solutions Principles of...

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Chapter 3, Exercise Solutions, Principles of Econometrics, 3e 34 EXERCISE 3.2 (a) The coefficient of EXPER indicates that, on average, a technical artist's quality rating goes up by 0.076 for every additional year of experience. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 0 1 2 3 4 5 6 7 8 EXPER RATING Figure xr3.2(a) Estimated regression function (b) Using the value (0.975,22) 2.074 c tt == , the 95% confidence interval for 2 β is given by 22 se( ) 0.076 2.074 0.044 ( 0.015, 0.167) c bt b ±= ± × = We are 95% confident that the procedure we have used for constructing a confidence interval will yield an interval that includes the true parameter 2 β
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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.

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