CHAPTER
6
Exercise Solutions
178
Chapter 6, Exercise Solutions, Principles of Econometrics, 4e
179
EXERCISE 6.1
(a)
To compute R 2 , we need SSE and SST. We are given SSE. We can find SST from the
equation
=
y
y )2
( yi =
N 1
SST
= 13.45222
N 1
Solving
CHAPTER
3
Exercise Solutions
31
Chapter 3, Exercise Solutions, Principles of Econometrics, 3e 32
EXERCISE 3.1
(a)
The required interval estimator is b1 tc se(b1 ) . When b1 = 83.416, tc = t( 0.975,38) = 2.024
and se(b1 ) = 43.410, we get the interval esti
CHAPTER
9
Exercise Solutions
200
Chapter 9, Exercise Solutions, Principles of Econometrics, 3e
EXERCISE 9.1
From the equation for the AR(1) error model et = et 1 + vt , we have
var ( et ) = 2 var ( et 1 ) + var ( vt ) + 2 cov ( et 1 , vt )
from which we g
CHAPTER
7
Exercise Solutions
141
Chapter 7, Exercise Solutions, Principles of Econometrics, 3e
142
EXERCISE 7.1
(a)
When a GPA is increased by one unit, and other variables are held constant, average
starting salary will increase by the amount $1643 ( t =
CHAPTER
4
Exercise Solutions
60
Chapter 4, Exercise Solutions, Principles of Econometrics, 3e 61
EXERCISE 4.1
ei2
2
( yi y )
(a)
R2 = 1
(b)
To calculate R 2 we need
( yi y )
2
=1
182.85
= 0.71051
631.63
( yi y )
2
,
= yi2 N y 2 = 5930.94 20 16.0352 =
CHAPTER
2
Exercise Solutions
1
Chapter 2, Exercise Solutions, Principles of Econometrics, 3e 2
EXERCISE 2.1
(a)
x
5
2
3
2
2
2
1
0
2
1
yi =
10
( x x )( y y )
3
0
1
0
4
2
( xi x ) = ( xi x )
0
6
0
0
0
4
2
=
( y y ) = ( x x )( y y ) =
10
0
10
y =2
( x x )
CHAPTER
6
Exercise Solutions
112
Chapter 6, Exercise Solutions, Principles of Econometrics, 3e
113
EXERCISE 6.1
(a)
To compute R 2 , we need SSE and SST. We are given SSE. We can find SST from the
equation
y =
( yi y )2 =
N 1
SST
= 13.45222
N 1
Solving t
CHAPTER
8
Exercise Solutions
177
Chapter 8, Exercise Solutions, Principles of Econometrics, 3e
EXERCISE 8.1
When i2 = 2
N
( xi x )
i =1
2
i2
2
N
( xi x )
i =1
2
N
=
( xi x )
i =1
2
2
2
N
( xi x )
i =1
2
N
=
2 ( xi x )
2
i =1
2
N
( xi x )
i =
CHAPTER
16
Exercise Solutions
414
Chapter 16, Exercise Solutions, Principles of Econometrics, 4e
415
EXERCISE 16.1
(a)
The least squares estimation of the linear probability model is
= 0.4848 + 0.0703DTIME
p
(se) (0.0714) (0.0129)
The estimated marginal e
CHAPTER
8
Exercise Solutions
271
Chapter 8, Exercise Solutions, Principles of Econometrics, 4e
272
EXERCISE 8.1
When i2 = 2
N
( xi x )
N
N
2
2
i2 ( xi x ) 2 2 ( xi x )
i 1 = 1
i
i
= 1=
=
= =
2
2
2
N
N
N
2
2
2
xi x )
xi x )
xi x )
(
(
(
= 1 = 1= 1
CHAPTER
12
Exercise Solutions
373
Chapter 12, Exercise Solutions, Principles of Econometrics, 4e
374
EXERCISE 12.1
(a)
The AR(1) model yt =t 1 + vt can be rewritten as a function of lagged errors:
y
y1 =y0 + v1
y2 = 1 + v2 =y0 + v1 ) + v2 = y0 + v1 + v2
y
CHAPTER
14
Exercise Solutions
397
Chapter 14, Exercise Solutions, Principles of Econometrics, 4e
398
EXERCISE 14.1
(a)
The conditional mean E (et | I t 1 ) = 0 because:
(
Et 1 ( et ) = zt ht
Et 1
)
= Et 1 ( zt ) Et 1
where Et 1 () is an alternative way of
CHAPTER
11
Exercise Solutions
336
Chapter 11, Exercise Solutions, Principles of Econometrics, 4e
337
EXERCISE 11.1
The ratio of the expressions for 1 and 2 is
2 1 2 ( 1 1 )
=
= 1
1
2 ( 1 1 )
Thus, one way to estimate 1 is to first obtain estimates 1 and
CHAPTER
4
Exercise Solutions
97
Chapter 4, Exercise Solutions, Principles of Econometrics, 4e
EXERCISE 4.1
e2
182.85
R2 = i 2 =
=
1
1
0.71051
631.63
( yi y )
(a)
(b)
To calculate R 2 we need
( yi y )
2
,
2
( yi y )= yi2 N y =
2
2
5930.94 20 16.035= 788
CHAPTER
10
Exercise Solutions
309
Chapter 10, Exercise Solutions, Principles of Econometrics, 4e
310
EXERCISE 10.1
(a)
The price of housing and rent paid are determined by supply and demand forces in the
market place. The omitted factors from this regress
CHAPTER
7
Exercise Solutions
225
Chapter 7, Exercise Solutions, Principles of Econometrics, 4e
226
EXERCISE 7.1
(a)
When a GPA is increased by one unit, and other variables are held constant, we estimate
that the average starting salary is estimated to in