a1 - ECON 3210 3.0 Section A - Fall 2011 Assignment 1 (Due...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 3210 3.0 Section A - Fall 2011 Assignment 1 (Due Date: September 28, 2011) Question 1: Let X be a random variable with mean μ x and variance σ 2 x . Also let Y = a + bX where a and b are known constants. Show that a. μ y = a + x . b. σ 2 y = b 2 σ 2 x . Question 2: Let grthemp denote the proportionate growth in employment (in percentage), at the country level, from 1990 to 1995, and let salestax denote the country sales tax rate (in percentage). The finance minister of the country reported that grthemp = 0 . 043 - 0 . 78 salestax. Interpret the intercept and slope in the equation. Question 3: The Human Resources Director of the Econometrics Coroperation told their Section Managers that they use the following formula to calculate salary of their employees. log( salary ) = 3 . 8 + 0 . 03 experience where salary is the annual salary and experience is the number of previous years of relevant experience. a. What is the starting salary for Tom, who joined the company with no previous work
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

a1 - ECON 3210 3.0 Section A - Fall 2011 Assignment 1 (Due...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online