Econ 371
Problem Set #4
Answer Sheet
6.2 This question asks you to use the results from column (1) in the table on page 213.
a. The rst part of this question asks whether workers with college degrees
Econ 371
Problem Set #5
Answer Sheet
8.1 This question looks at log dierences and how well they approximate percentage changes.
a. The rst question indicates the Sales2001 = 196 million and Sales2002
Chapter 12
Chapter 13 in the 5th edition
The Weighted-Average Cost of Capital (WACC)
Measuring Capital Structure
Calculating Required Rates of Return
Calculating the Weighted Average Cost of Capit
Econ 371
Problem Set #6
Due November 13, 2009
1) Your textbook suggests an entity-demeaned procedure to avoid having to specify a
potentially large number of binary variables. While it is somewhat ted
Econ 371
Practice Exam #3
Multiple Choice (5 points each): For each of the following, select the single most appropriate
option to complete the statement.
1) The interpretation of the slope coefficien
Econ 371
Problem Set #1
Answer Key
1. You are given the following information regarding the joint distribution of X (the age of a
person) and Y (the number of days they choose to spend at Saylorville
Econ 371
Problem Set #6
Answer Sheet
10.1 In this rst question, you are asked to consider the following equation:
Yit = 0 + 1 Xit + 3 St + uit .
(1)
You are asked how you might time-demean the data so
Econ 371
Exam #2
Multiple Choice (5 points each): For each of the following, select the single most appropriate
option to complete the statement.
1) The slope estimator, 1, has a smaller standard erro
Econ 371
Exam #1
Multiple Choice (5 points each): For each of the following, select the single most appropriate
option to complete the statement.
1) The probability of an outcome
a)
b)
c)
d)
is the nu
Econ 371 Problem Set #7 Answers 1. Stock and Watson, question 12.10. You are told that you have an instrumental variable regression model with Yi = 0 + 1 Xi + 2 Wi + ui , where Zi is an instrument. Yo
Econ 371
Problem Set #3
Answer Sheet
4.3 In this question, you are told that a OLS regression analysis of average weekly earnings yields the following
estimated model.
AW E = 696.7 + 9.6 Age, R2 = 0.0
Econ 371
Problem Set #2
Answer Set
1. Let Y be a Bernoulli random variable with success probability P r(Y = 1) = p, and let Y1 , . . . , Yn
be i.i.d. draws from this distribution. Let p be the fractio
Chapter 9
Chapter 10 in the 5th edition
How Firms Organize the Investment Process
Some What If Questions
Break-Even Analysis
Real Options and the Value of Flexibility
How Firms Organize the Investment