Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561, Fall 2013
Exam 3
Maximum potential: 50 points
The nal exam will be in an oral format. Each student will be provided a ten minute
period during which he/she will have an opportunity to demonstrate the degree of
knowledge that they were able to mas
Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561
Exam 2
1. Why do we use regression models? That is, what kinds of inferences can we
gain from executing a regression analysis?
2. Consider the regression model: Y = X + . Explain how we seek to obtain
an OLS estimator and then solve for the OLS es
Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561, Fall 2013
Graded Practice Opportunity
1. In your words, explain the intuition behind a probability limit, plim, how it is
used, what you can learn from evaluating it, and why it is useful to know the
results of evaluating the limit.
2. Is it the
Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561, Fall 2012
Graded Practice Opportunity
This assignment is designed to be relatively unstructured and is intended to have
you think through the modeling process, appropriately clean and generate additional
data, and investigate the validity of esti
Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561, Fall 2013
Graded Practice Opportunity
1. Evaluate the following:
10
a)
i
i=1
10
b)
2
i=1
3
2Yi
c)
i=0
5
Y Yi
d)
i=1
e)
1
4
3
i Zi
i=1
2. Suppose that you trying to determine the number of dierent combinations of
name initials.
(a) If all people h
Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561, Fall 2013
Graded Practice Opportunity
1. The following problem will help you understand the eects of scaling on linear
OLS regression analysis.
(a) Suppose that 0 and 1 are the estimated parameters from the regression
log Y = 0 + 1 X + . What is
Foundations of Econometrics Using SAS Simulations and Examples
ECNS 561

Spring 2014
ECNS561, Fall 2013
Graded Practice Opportunity
1. Suppose that you have data on middle schoolers age, weight, and parents
income (in thousands).
Age
Weight
Income
14
12
13
12
14
110
95
105
100
105
45
28
40
40
42
Consider the model: W eight = f (Age, Incom