Econ 466 Spring 2013
Homework 2
1. Consider the following formulation of the two-variable regression:
Model I: Yi = 1 + 2 Xi + ui
Model II: Yi = 1 + 2 (Xi X) + ui
(i) Find the estimators of 1 and 1 . Are they identical? Are the variances identical?
(ii) F
Homework 2 Answer Key
1. i.
and
( )
( )
( )
and
)
(
. They are not identical
(
)
( )
They are not identical.
)(
(
ii.
)
( )
( )
)
They are identical.
)
(
. They are identical.
)
(
)(
(
and
)
(
iii. Model II may be easier to compute without statisti
Homework 6 Answer Key
1. The estimated equation is:
i.
The coefficient on black implies that, at given levels of the other explanatory variables,
black men earn about 18.8% less than nonblack men. The t statistic is about -4.95, and so
it is very statisti
Homework 1 Answer Key
1 (i) $566.
(ii) The two middle numbers are 480 and 530; when these are averaged, we obtain 505, or $505.
(iii) 5.66 and 5.05, respectively.
(iv) The average increases to $586 while the median is unchanged ($505).
2. (i) This is just
ECON 466 - INTRODUCTION TO ECONOMETRICS
Spring 2015
Instructor: Professor Subal Kumbhakar
Class Room: SL 306
Office: Library Tower # 1009
Class Time: M 10:50-12:50, W 10:50-11:50
Office Hours: M 9:40-10:40, W 9:40-10:40, 12:20-1:20
Phone: 7-4762, E-mail:
Economics 466: Introductory Econometrics
State University of New York at Binghamton
Department of Economics
Fall 2011
Midterm I
The exam consists of three questions on three pages. Each question is of equal value.
1. Consider the residuals obtained via an
ECON 466/502
Fall 2013
HW#4
(Due in class on Tuesday, October 8, 2012)
Show your work.
If rounding is needed, round to four places, that is, to the nearest ten thousandth .
1. Consider each of the following statements separately. Is the statement true or
Economics 466Introduction to EconometricsExam II
Instructions:
Answer all questions clearly. Do not write anything irrelevant. No partial credit will be
given for insucient answers. Each question carries the point value as indicated within
parentheses. Th
Exam II:
Econ 466
Yoon 3-26-14
Student Name: _ Use the back page if you need
more space.
Justify your answers by showing your work. You assume all the assumptions of
the standard linear model .
1. The true regression model is y = 0 + 1 1 + 2 2 + + + and t
Fall 2002
Econ 466
Midterm Examination 1
Total points: 100
Time: 1 hour and 15 minutes
Name (print) _
SS# _
Answer all questions. Write clearly and legibly. Good Luck!
1. A sample of 60 observations on household expenditures for natural gas and
electricit
Econ 466 Spring 2016
Homework 2 Answer Key
1. Consider the following formulation of the two-variable regression:
Model I: Yi = 1 + 2 Xi + ui
+ ui
Model II: Yi = 1 + 2 (Xi X)
(i) Find the estimators of 1 and 1 . Are they identical? Are the variances ident
Econ 466 Spring 2016
Homework 3 Answer Key
1. Use the data in SLEEP75.RAW from Biddle and Hamermesh (1990) to study whether
there is a tradeoff between the time spent sleeping per week and the time spent in
paid work. We could use either variable as the d
Econ 466 Spring 2013
Homework 2
1. Consider the following formulation of the two-variable regression:
Model I: Yi = 1 + 2 Xi + ui
Model II: Yi = 1 + 2 (Xi X) + ui
(i) Find the estimators of 1 and 1 . Are they identical? Are the variances identical?
(ii) F
APPENDIX B
SOLUTIONS TO PROBLEMS
B.1 Before the student takes the SAT exam, we do not know nor can we predict with certainty
what the score will be. The actual score depends on numerous factors, many of which we
cannot even list, let alone know ahead of
Econ 466 Spring 2016
Homework 3
1. Use the data in SLEEP75.csv from Biddle and Hamermesh (1990) to study whether
there is a tradeoff between the time spent sleeping per week and the time spent in
paid work. We could use either variable as the dependent va
APPENDIX C
SOLUTIONS TO PROBLEMS
C.1 (i) This is just a special case of what we covered in the text, with n = 4: E(
Y
) = and Var(
) = 2/4.
Y
(ii) E(W) = E(Y1)/8 + E(Y2)/8 + E(Y3)/4 + E(Y4)/2 = [(1/8) + (1/8) + (1/4) + (1/2)] = (1 +
1 + 2 + 4)/8 = , which
APPENDIX E
SOLUTIONS TO PROBLEMS
E.1 This follows directly from partitioned matrix multiplication in Appendix D. Write
X =
Therefore, XX =
x1
x 2
M
x n
and Xy =
n
xx
t
,X = (
K
x
n
), and y =
y1
y 2
M
y n
. An equivalent expression for
n
Econ 466 Spring 2016
Homework 4 Answer Key
1. The data in WAGE2.csv on working men was used to estimate the following equation:
d = 10.36 0.094sibs + 0.131meduc + 0.210f educ
educ
n = 772, R2 = 0.214
where educ is years of schooling, sibs is number of sib
Econ 466 Spring 2016
Homework 5 Answer Key
1. Consider an equation to explain salaries of CEOs in terms of annual firm sales, return
on equity, (roe, in percentage form), and return on the firms stock (ros, in percentage form):
log(salary) = 0 + 1 log(sal
Econ 466 Spring 2013
Homework 4
1. Consider an equation to explain salaries of CEOs in terms of annual rm sales, return
on equity, (roe, in percentage form), and return on the rms stock (ros, in percentage form):
log(salary) = 0 + 1 log(sales) + 2 roe + 3
Econ 466 Spring 2016
Homework 2
1. Consider the following formulation of the two-variable regression:
Model I: Yi = 1 + 2 Xi + ui
+ ui
Model II: Yi = 1 + 2 (Xi X)
(i) Find the estimators of 1 and 1 . Are they identical? Are the variances identical?
(ii)
CHAPTER 15
TEACHING NOTES
When I wrote the first edition, I took the novel approach of introducing instrumental variables as
a way of solving the omitted variable (or unobserved heterogeneity) problem. Traditionally, a
students first exposure to IV method
Econ 466 Spring 2013
Homework 4
1. Consider an equation to explain salaries of CEOs in terms of annual rm sales, return
on equity, (roe, in percentage form), and return on the rms stock (ros, in percentage form):
log(salary) = 0 + 1 log(sales) + 2 roe + 3
Econ 466 Spring 2010
Homework 5
(Due date: March 18th.)
1. Using the data in RDCHEM.RAW, the following equation was obtained by OLS:
(i) At what point does the marginal eect of sales on rdintens become negative?
(ii) Would you keep the quadratic term in t
Econ 466 Spring 2011
Homework 6
(Due date: April 4)
1. Use the data in WAGE2.RAW for this exercise.
(i) Estimate the model
log(wage) = 0 +1 educ+2 exper+3 tenure+4 married+5 black+6 south+7 urban+u
and report the results in the usual form. Holding other f
CHAPTER 11
TEACHING NOTES
Much of the material in this chapter is usually postponed, or not covered at all, in an introductory
course. However, as Chapter 10 indicates, the set of time series applications that satisfy all of the
classical linear model ass
Econ 466 Spring 2010
Homework 5 Answer Key
1. Using the data in RDCHEM.RAW, the following equation was obtained by OLS:
(i) At what point does the marginal eect of sales on rdintens become negative?
The turnaround point is given by 1 /(2|2 |), or .0003/(.
8.Multiple Regression_1
ECON 466
1
The Model
y 0 1x1 2 x2 . k xk u
where E(u| x1, x2, xk )= E(u) = 0
2
Why Multiple Regression?
Bias reduction: more accuracy of . Can test
causality.
Exogeneity of x is a dubious assumption in simple
regression model whe
2.Statistical Concepts
that I assume you know so you fill out the slides
ECON 466
1
Random Variables & Probability Distribution
Discrete RV
2
Random Variables & Probability Distribution
Continuous RV
3
Moments of a Distribution
4
Expected Value/Mean of
4. Simple Regression
ECON 466
1
Motivation
Types of questions we are trying to answer:
What is the effect of cigarette taxes on smoking?
What is the effect of school spending on student
performance?
What is the effect of class size on student
performa
1.Introduction
ECON 466
1
Questions
Does cigarette taxes affect smoking?
What is the effect of class size on student
performance, if any?
How effective is advertising in increasing sales?
What is the effect of higher education on lifetime
earning?
Do