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ProblemSet3

# ProblemSet3 - Professor Mumford [email protected] Econ 360...

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Professor Mumford Econ 360 - Fall 2010 [email protected] Problem Set 3 Due at the beginning of class on Tuesday, September 14 Multiple Choice Questions (12 points) Suppose that a random sample of 200 male students is selected from Purdue’s student population. These mens’ weight (measured in pounds) is regressed on their height (measured in inches) with the following result: d weight = - 100 + 4 height n = 200 R 2 = . 8100 1. What is the predicted weight from this regression for someone who is 5’10” (70 inches) tall? (a) 380 (b) 280 (c) 200 (d) 180 2. Suppose that instead of measuring in pounds and inches, we measured in pounds and feet (5.833 feet instead of 70 inches). What would be the estimated intercept? (note that 12 inches = 1 foot) (a) -8.333 (b) -12 (c) -100 (d) -1200 3. Again, suppose that instead of measuring in pounds and inches, we measured in pounds and feet. What would be the estimated coeficient on height ? 1

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4. Suppose that instead of measuring in pounds and inches, we measured in kilograms and inches. What would be the estimated intercept? (note that 1 pound = .454 kilograms) 5. Again, suppose that instead of measuring in pounds and inches, we measured in kilo- grams and inches. What would be the estimated estimated coeficient on height ? 6. Suppose that instead of measuring in pounds and inches, we measured in kilograms and feet. What would be the new R-squared? (a) 0.0675 (b) 0.2700 (c) 0.3677 (d) 0.8100 True/False (6 points) Please write the entire word. No explanations are required. 7. In the simple linear regression model, the homoskedasticity assumption means that the error, u , has the same variance given any value of the explanatory variable, x .
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