ECO 231
Dr. D. Letcher
Things to think about for Chapter 3
1.
What is an exact linear relationship?
x12345
6
y 3 5 7 9 11 13
y = 1 +2x
In social sciences, and in business and economics, exact linear relationships are the
exception rather than the rule.
2.
HW #2 solutions
3.12
a
= 7.1001 + 0.9107(8) = 14.3857
b
t(/2, n 2)sm
= 0.0824
sm = = 0.2871
14.3857 2.571(0.2871)
c
(13.65, 15.12)
= 7.1001 + 0.9107(8) = 14.3857
d
or
t(/2, n 2)sp
= 0.6594
sp = = 0.812
14.3857 2.571(0.812) or
(12.30, 16.47)
e
The standa
1
ECO 231, Applied Business and Economic Statistics.
Spring, 2012
Prerequisite: Stat 215.
Instructor: Dr. David W. Letcher
BB 316. Tel: (609) 771-2828 Email: [email protected]
Office Hours: Tues 4 5 pm; Wed. 11 am 12 noon; Thurs. 3:30 4:30 pm and by appoin
Final model:
The SAS System
The REG Procedure
Model: MODEL1
Dependent Variable: y
Number of Observations Read 50
Number of Observations Used 50
Analysis of Variance
Source
D Sum of Mean F Value Pr > F
F Squares Square
Model
4 0.14932
0.0373
3
Error
45 0.0
Eco 231
6. A.
Ho: u1=u2=u3=u4
Ha: not Ho
Reject Ho if F > F.05 (k-1, n-k)
F .05 (3,16)
33.09 > 3.24, so reject Ho . the mean starting salary of the different majors are not all equal.
atleast one of the means is different. there is treatment effect, so th
ECO231
Final Project
Due: December 8, 2015 by 11:59pm
Deliverables
1. Paper: 5-10 pages single spaced. Limit does not include tables, figures, and/or appendices
2. Data Set: Send in the data you used in your analysis as a .dta file or spreadsheet. Excepti
Exam review
Exam
will focus on chapter 3
Know how to interpret .
Know the basic meaning of ,
What is the equation for ?
A practice exam is posted on Canvas.
Problem sets are also good practice.
While you are expected to have read subsections 3.4.3
Unit 1 Introduction 3
, us:- 1 ,Witroiil .
Why learn IFRS?
International Financial Reporting Standards, commonly referred to as WRS, are gaining
momentum as the global norm in nancial reporting. Issued by the London-based
International Accounting Stan
ECO 231: Applied Business and
Economics Statistics
Simple Linear Regression Part 1
Last class
Reviewed probability and statistics
Estimating population mean and variance
using sample analogs
Estimators are random variables themselves
and we can derive
ECO 231. Spring 2012. Dr. D. Letcher
Solutions to HW #5
Model Summaries:
R-square
Adjusted R-Square
Standard Error
95.1
99.8
Linear Model
Second-Order Model
94.8
99.7
68.41
15.14
The second-order model appears better than the first-order model. The p valu
ECO 231: Applied Business and
Economics Statistics
Problem Set 1 Review, Regression in
Excel, Intro to Stata
Class Overview
PS1 Review
Simple linear regression exercises in Excel
Intro to Stata
skip to slide 7
Continue with Chapter 3 concepts and
pot
ECO 231: Applied Business and
Economics Statistics
Multiple Regression Part 1
Exam questions
New notation
Motivation of Multiple Regression
Regression Model and Least-squares
estimation
Introduction to Multiple Regression
Multiple (or multivariate) regre
ECO 231: Applied Business and
Economics Statistics
Multiple Regression 2: Dummy
Variables and Interactions
Utilizing categorical data
Categorical information is often of great interest in
understanding relationships and predicting outcomes
Examples:
Ge
Exam 1
ECO 231, Fall 2015
Name:_The Professor_
Question 1 (5 points)
For a variable , we calculate its sample mean as:
1
=
=1
its sample variance as:
2
1
=
( )2
1
=1
and its sample standard deviation of as:
= 2
1) Which statement is not true? (Check on
ECO231
Practice Exam 1
All questions equally weighted.
1) The variable is generated from a deterministic linear function of as follows: = 3. The
deterministic relationship implies that the sample mean of is = 3 and the sample variance of is
2 = 9 2 .
1.1
ECO231
Practice Exam 1
All questions equally weighted.
1) The variable is generated from a deterministic linear function of as follows: = 3. The
deterministic relationship implies that the sample mean of is = 3 and the sample variance of is
2
2
= 9 .
1.1
ECO 231: Applied Business and
Economics Statistics
Review of Basic Statistical Concepts
Companion to Chapter 2 in the
Textbook
Notation used in this class
Observations
The subscript i
represents an individual or some other cross-sectional
unit (e.g. a
Exam review
Exam will focus on chapter 3
Know how to interpret .
Know the basic meaning of ,
What is the equation for ?
A practice exam is posted on Canvas.
Problem sets are also good practice.
While you are expected to have read subsections 3.4.3
1st model:
The SAS System
The REG Procedure
Model: MODEL1
Dependent Variable: y
Number of Observations Read 50
Number of Observations Used 50
Analysis of Variance
Source
D Sum of Mean F Value Pr > F
F Squares Square
Model
6 0.14911 0.02485
Error
43 0.0856
What influences High School Graduation in US
Statement of Problem
The purpose of this empirical project is to determine what factors influence high school
graduation rate in the United States. The dependent variable was high school graduation rate, and
th
ECO 231. Spring 2012. Dr. D. Letcher
Solutions to HW #6
7.4
a
Hypotheses:
H0: 2 = 3 = 0.0
Ha: At least one of the coefficients is not equal to 0.
Decision Rule: Reject H0 if F > 3.00
Do not reject H0 if F 3.00
F(0.05; 2, 191) 3.00
(6.4475 3.7313) / 2
= 69
HW #1
Eco 231 Dr. Letcher
Spring 2012
Some of these problems are odd numbered and have their answers in the back of the
book and in the solutions manual. You might try them first and compare your answers
to the correct ones.
1.
2.
3.
4.
P. 69 1
P. 90 4
P.
HW #5
Eco 231 Dr. Letcher Spring 2012
1. p. 201 #4, 5, 6, 7
2. Get the dataset called nenana ice breakup data from our folder on my L: drive
Go to http:/www.nenanaakiceclassic.com/ for a little background on the Nenana
Ice Classic.
Youll note that this da
HW #2
Eco 231 Dr. Letcher Spring 2012
1. P. 111
P. 120-121
2.
3.
5.
6.
P. 122
P. 122
P. 124
P. 126
12c and 12 d; 15b (the answers are in Fig. 3.33)
20, 21, 22, 23 omit 23d, 24 but omit the second sentence in both
24d and 24e, 25
26 omit 26d and 26e.
27
30
ECO 231
Dr. D. Letcher
Things to think about for Chapter 4
1.
What does the graph geometry of the relationship between Y and two
explanatory variables look like?
2.
What do scatterplots of Y vs. each independent variable indicate visually?
3.
What criteri
ECO 231 Dr. D. Letcher
Topics on the Final Exam
Chapter 6
6.1, 6.2, 6.3, 6.4.1, 6.4.3, 6.5.1, 6.5.3 steps 1 and 2. 6.6.1
Chapter 7
All of chapter 7
Chapter 9
9.1 and 9.3.
Chapter 11
11.1, 11.2, 11.3, 11.4, 11.5, 11.6 just additive decomposition, not multi
The model gives us insights into the factors that affect the high school graduation rate in the
United States. Amongst the factors I chose, the significant ones were the student to teacher ratio
(x1), the average reading score for the nationwide 8th grade
Formulation of Model
This empirical project will use the knowledge of prior research and articles to identify the
factors that affect high school graduation rate and how they affect the rate. The factors can be
grouped into three general categories: the s