Exercise 2

# Exercise 2 - ECN 425 ECONOMETRICS EXERCISE 2 DR AHN FALL...

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A-1 ECN 425 EXERCISE 2 DR. AHN ECONOMETRICS FALL 2011 Q1. (30 pts.; 3 pts. on each.) Choose the one alternative that best completes the statement or answers the question. Write your answers below. The ones marked on questions will not count. Answers for 1): ; for 2): ; for 3): ; for 4): ; for 5): for 6): ; for 7): ; for 8): ; for 9): ; for 10): 1) An example of a randomized controlled experiment is when a. households receive a tax rebate in one year but not the other. b. one U.S. state increases minimum wages and an adjacent state does not, and employment differences are observed. c. random variables are controlled for by holding constant other factors. d. some 5 th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared holding constant other factors. 2) Most economic data are obtained a. through randomized controlled experiments. b. by computer simulations based on economic models. c. through textbook examples typically involving ten observation points. d. by observing real-world behavior. 3) In the simple linear regression model, the regression slope a. indicates by how many percent Y increases, given a one percent increase in X . b. indicates by how many units Y increases, given a one unit increase in X . c. represents the elasticity of Y on X . d. when multiplied with the explanatory variable will give you the predicted Y .

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Exercise 2 - ECN 425 ECONOMETRICS EXERCISE 2 DR AHN FALL...

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