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PS4--Answers - Econ 141: Problem Set 4 Fall 2007 Due...

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Unformatted text preview: Econ 141: Problem Set 4 Fall 2007 Due Wednesday, October 24th in Class 1. (Requires SAS) First, create 15 observations of the following variables USING THE SEED NUMBERS GIVEN (so that you all have the same numbers in your distributions). Remember that a uniform random variable distributed between 0 and 5 is just a standard uniform random variable multiplied by 5 and a normal random variable with variance equal to 2 is just a standard normal random variable multiplied by : Variable Seed x 1 uni (0 , 2) 20111 x 2 uni (0 , 3) 20211 x 3 uni (0 , 4) 20311 x 4 uni (0 , 5) 20411 x 5 uni (0 , 6) 20511 x 6 uni (0 , 7) 20611 x 7 N (0 , 4) 20711 x 8 N (0 , 9) 20811 x 9 N (0 , 16) 20911 x 10 N (0 , 25) 21011 x 11 N (0 , 36) 21111 x 12 N (0 , 49) 21211 N (0 , 1) 12345 y = 1 + 8 * x 1 + 7 * x 2 + 6 * x 3 + 5 * x 4 + 4 * x 5 + 3 * x 6 + 2 * x 7 + x 8 + Then use SAS to perform the following steps: 1. Display means and standard deviations for x 1- x 12 , y, and . 2. Perform and LM test of the hypothesis that x 7- x 12 should be included in the regres- sion of y on the x s. 1 3. Perform an F test of the same hypothesis. Finally, repeat the above steps for N = 30 , N = 100 , and N = 1000. Explain any differences in your results. (Please turn in your SAS code (the editor) as well as the output and the answer to the final question. No need to turn in the log unless there are errors that you are concerned about.) SAS code: (just change the do i=1 to 15 line to change the number of observations) data ps4; do i=1 to 15; x1=ranuni(20111)*2; x2=ranuni(20211)*3; x3=ranuni(20311)*4; x4=ranuni(20411)*5; x5=ranuni(20511)*6; x6=ranuni(20611)*7; x7=rannor(20711)*2; x8=rannor(20811)*3; x9=rannor(20911)*4; x10=rannor(21011)*5; x11=rannor(21111)*6; x12=rannor(21211)*7; e=rannor(12345); y=1+8*x1+7*x2+6*x3+5*x4+4*x5+3*x6+2*x7+x8+e; output; end; run; proc means data=ps4 mean std min max; var x1 x2 x3 x4 x5 x6 x7 x8 x9 x10 x11 x12 y e; run; proc reg data=ps4; model y=x1 x2 x3 x4 x5 x6; output R=ps4resid out=ps4out;...
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PS4--Answers - Econ 141: Problem Set 4 Fall 2007 Due...

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