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Unformatted text preview: Department of Economics Professor Dale J. Poirier University of California, Irvine December 9, 2010 FINAL EXAM ECON 123A Econometrics I Directions : You must answer each of the following questions. Points (out of 100) are allocated as noted to the left of each question. Allocate your time according to these points. To receive any partial credit, you must show your work. 1. Let X and U denote random variables. Suppose that E(U * X) = X 2 , E(X) = 0, Var(X) = 1, and E(X 3 ) = 0. (5) (a) What is E(U)? (5) (b) What is E(XU)? (5) (c) What is Cov(X, U)? (5) (d) Is U mean independent of X? 2. Suppose you are interested in estimating the mean starting salary 2 (measured in thousand dollars) for your major upon graduation. Your undergraduate placement officer suggests you view such salaries iid N( 2 , 100/3), where - 4 < 2 < 4 is unknown, and you have no reason to question such advice. Because only a small number of individuals will be available to you to gather additional information on 2 , you interrogate yourself and decide...
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This note was uploaded on 12/13/2011 for the course ECON 123a taught by Professor Staff during the Fall '08 term at UC Irvine.
- Fall '08