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
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(
Y ) = 2/4.
(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
Extra Exam #2 Problems
1. Compute the slope coecient and intercept term for a regression W P O = 0 +1 S&P 500+
using the following information:
cov(S&P 500, W P O) = 0.000336
S&P 500 = 2.70%
var(S&P 500) = 0.000522
W P O = 4.05%
The data are for three yea
Introduction to Econometrics
Third Edition
James H. Stock
Mark W. Watson
The statistical analysis of economic (and related) data
1/2/3-1
1/2/3-2
Brief Overview of the Course
Economics suggests important relationships, often with policy
implications, but v
Stock/Watson: Introduction to Econometrics, Update 3/e
http:/wps.aw.com/wps/media/objects/11422/11696965/glossar.
Causal effect
The expected effect of a given intervention
or treatment as measured in an ideal
randomized controlled experiment.
1 of 54
Cont
Stock/Watson: Introduction to Econometrics, Update 3/e
1 of 39
http:/wps.aw.com/wps/media/objects/11422/11696965/glossar.
Best linear unbiased estimator
(BLUE)
Confidence level
An estimator that has the smallest
variance of any estimator that is a linear
APPENDIX A
SOLUTIONS TO PROBLEMS
A.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).
A.2 (i
Chapter 1 The Nature of Econometrics and Economic Data
Chapter 2 The Simple Regression Model
Stata Command
/Summary Statistics
use JTRAIN2.dta,replace
/describe the dataset
de
/C4.i. tabulate train
tab1 train
/C4.ii. summarize re78 by train
tab1 train, su
the variances, they should appeal to the Gauss-Markov theorem for the superiority of OLS over
any other linear, unbiased estimator.
SOLUTIONS TO PROBLEMS
3.1 (i) hsperc is defined so that the smaller it is, the lower the students standing in high
school.
SOLUTIONS TO PROBLEMS
4.1 (i) and (iii) generally cause the t statistics not to have a t distribution under H0.
Homoskedasticity is one of the CLM assumptions. An important omitted variable violates
Assumption MLR.3. The CLM assumptions contain no mention
SOLUTIONS TO PROBLEMS
2.1 (i) Income, age, and family background (such as number of siblings) are just a few
possibilities. It seems that each of these could be correlated with years of education. (Income
and education are probably positively correlated;
SOLUTIONS TO PROBLEMS
1.1 (i) Ideally, we could randomly assign students to classes of different sizes. That is, each
student is assigned a different class size without regard to any student characteristics such as
ability and family background. For reaso
Selected Exam 1 Solutions
Econometrics
Version: Spring 2015
1. A public good is only produced if at least one person volunteers to pay an arbitrary cost. Let X = number of 4 people who independently decide whether to volunteer. Then the range of X = cfw_0
Dimitri Thadal
6/9/2015
Lab #2
Abstract:
In this lab I learned that stock prices in the United States are statistically related to
unemployment and real GDP. Specifically, as the unemployment rate rises, stock prices fall.
Whereas when real GDP rises stoc
Dimitri Thadal
06/23/2015
Lab #5
Abstract:
In this lab, I learned that violent crime in the United States is statistically related to
unemployment rate, gross state product, personal income and population density. More
specifically, as unemployment rate r
Which of the following statements regarding the terms population and sample is least accurate?
A)
A sample includes all members of a specified group.
B)
A sample's characteristics are attributed to the population as a whole.
C)
A descriptive measure of a
Lab Manual
Econometrics
220:322
Prof. Paczkowski
Summer, 2015
May 27, 2015
1
2
All assignments must include the
following at a minimum:
1. An Abstract (this goes upfront, before anything else, since its a summary of what will
come)
2. A Data Dictionary fo
Econometrics 322
Exam 3 Study Aid
Home Page
Prof. Paczkowski
Department of Economics
Title Page
December 8, 2014
Contents
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The purpose of this package is to help you master the advanced details of econometric
anal
Daniel Edelstein
Econometrics Lab #3
October 20th 2014
Abstract
Water consumption throughout the world will always be considered a problem due to the
fact that every individual needs it. The deficit of this necessity creates curiosity on what
drives consu