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Unformatted text preview: University of California, Davis ARE 106  Winter 2011 Sample Midterm 1 Name: Student Number: Short Questions 1. Explain what an interval estimate is. 2. Draw a picture of a probability density function (pdf) for a normal distribution with mean μ = 10. Be sure to label the xaxis and yaxis! 3. Write x 1 y 1 + x 1 y 2 + x 1 y 3 + x 1 y 4 + x 1 y 5 + x 1 y 6 + x 1 y 7 in summation notation. University of California, Davis ARE 106  Winter 2011 4. You know that a random variable Y is distributed N (83 , 64). What is the distribution of ( Y 83) / 8? Justify by showing your work. 5. You are given a sample regression function and a single data point ( x i ,y i ). Graphically show where b 1 , b 2 x i , and ˆ e i are located. University of California, Davis ARE 106  Winter 2011 Long Questions 1. You have three observations on how income impacts food expenditure. Food expenditure per week Income ($1000s of dollars per month) 88.4 2.7 86.6 2.5 127.8 3.4 (a) Write down the econometric model being careful to identify which variable is the...
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 Spring '10
 Havenner
 Normal Distribution, Standard Deviation, Variance, Probability theory, probability density function, University of California

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