CHAPTER
6
Exercise Solutions
112
Chapter 6, Exercise Solutions, Principles of Econometrics, 3e
113
EXERCISE 6.1
(a)
To compute R 2 , we need SSE and SST. We are given SSE. We can find SST from the
equation
y =
( yi y )2 =
N 1
SST
= 13.45222
N 1
Solving t
CHAPTER
7
Exercise Solutions
141
Chapter 7, Exercise Solutions, Principles of Econometrics, 3e
142
EXERCISE 7.1
(a)
When a GPA is increased by one unit, and other variables are held constant, average
starting salary will increase by the amount $1643 ( t =
CHAPTER
4
Exercise Solutions
60
Chapter 4, Exercise Solutions, Principles of Econometrics, 3e 61
EXERCISE 4.1
ei2
2
( yi y )
(a)
R2 = 1
(b)
To calculate R 2 we need
( yi y )
2
=1
182.85
= 0.71051
631.63
( yi y )
2
,
= yi2 N y 2 = 5930.94 20 16.0352 =
CHAPTER
2
Exercise Solutions
1
Chapter 2, Exercise Solutions, Principles of Econometrics, 3e 2
EXERCISE 2.1
(a)
x
5
2
3
2
2
2
1
0
2
1
yi =
10
( x x )( y y )
3
0
1
0
4
2
( xi x ) = ( xi x )
0
6
0
0
0
4
2
=
( y y ) = ( x x )( y y ) =
10
0
10
y =2
( x x )
CHAPTER
3
Exercise Solutions
31
Chapter 3, Exercise Solutions, Principles of Econometrics, 3e 32
EXERCISE 3.1
(a)
The required interval estimator is b1 tc se(b1 ) . When b1 = 83.416, tc = t( 0.975,38) = 2.024
and se(b1 ) = 43.410, we get the interval esti
CHAPTER
8
Exercise Solutions
177
Chapter 8, Exercise Solutions, Principles of Econometrics, 3e
EXERCISE 8.1
When i2 = 2
N
( xi x )
i =1
2
i2
2
N
( xi x )
i =1
2
N
=
( xi x )
i =1
2
2
2
N
( xi x )
i =1
2
N
=
2 ( xi x )
2
i =1
2
N
( xi x )
i =
CHAPTER
9
Exercise Solutions
200
Chapter 9, Exercise Solutions, Principles of Econometrics, 3e
EXERCISE 9.1
From the equation for the AR(1) error model et = et 1 + vt , we have
var ( et ) = 2 var ( et 1 ) + var ( vt ) + 2 cov ( et 1 , vt )
from which we g
Answers to Selected
Exercises
For
Principles of Econometrics, Fourth Edition
R. CARTER HILL
Louisiana State University
WILLIAM E. GRIFFITHS
University of Melbourne
GUAY C. LIM
University of Melbourne
JOHN WILEY & SONS, INC
New York / Chichester / Weinheim