ECON 303, EXAM 1 FALL 2008 DUE: WEDNESDAY, OCTOBER 8, 2008 at 12:40 PM Please show your work. There are 3 sections. Each section carries equal weight. If you have ANY questions, please ASK ME. Yes, the LC HONOR CODE APPLIES Section 1: Interpreting Informa
ECON 303, EXAM 1 FALL 2008 DUE: FRIDAY, NOVEMBER 14, 2008 at 12:40 PM Please show your work. There are 3 sections. Each section carries equal weight. If you have ANY questions, please ASK ME. Yes, the LC HONOR CODE APPLIES Interpreting Regressions 1. Earn
Chapter 2 14. The central limit theorem suggests that when the sample size (n) is large, the distribution of 2 2 2 the sample average (Y ) is approximately N Y , Y with Y = nY . Given Y = 100,
2 Y = 43.0, 2 43 (a) n = 100, Y = nY = 100 = 0.43, and
2
Pr (
Chapter 12 Answers 1.
cigarettes cigarettes (a) The change in the regressor, ln(Pi, 1995 ) - ln(Pi, 1985 ), from a $0.10 per pack increase in
the retail price is ln 2.10 - ln 2.00 = 0.0488. The expected percentage change in cigarette demand is -9.94 0.048
Chapter 10 Answers
1.
(a) With a $1 increase in the beer tax, the expected number of lives that would be saved is 0.45 per 10,000 people. Since New Jersey has a population of 8.1 million, the expected number of lives saved is 0.45 810 = 364.5. The 95% con
Chapter 9 Answers 1. As explained in the text, potential threats to external validity arise from differences between the population and setting studied and the population and setting of interest. The statistical results based on New York in the 1970's are
Chapter 8 Answers 2. (a) According to the regression results in column (1), the house price is expected to increase by 21% (= 100% 0.00042 500 ) with an additional 500 square feet and other factors held constant. The 95% confidence interval for the percen
Chapter 6 Answers 1. By equation (6.15) in the text, we know R2 = 1 - n -1 (1 - R2 ). n - k -1
Thus, that values of R 2 are 0.175, 0.189, and 0.193 for columns (1)(3). 2. (a) Workers with college degrees earn $5.46/hour more, on average, than workers with
Chapter 5 Answers
1
82 1. 96 2.21, that is -10. 152 1 (a) The 95% confidence interval for 1 is cfw_-5. (b)Calculate the t-statistic: t act =
-1.4884.
1 - 0 -5.82 = = -2.6335. SE( 1) 2.21
The p-value for the test H 0 : 1 = 0 vs. H1 : 1 0 is p-value = 2( -
Chapter 4 Answers 1. (a) The predicted average test score is TestScore = 520.4 - 5.82 22 = 392.36 (b)The predicted change in the classroom average test score is TestScore = ( -5.82 19) - (-5.82 23) = 23.28 (c) Using the formula for 0 in Equation (4.8), we
Chapter 3 Answers 1. The central limit theorem suggests that when the sample size ( n ) is large, the distribution of the 2 2 2 sample average ( Y ) is approximately N Y , Y with Y = nY . Given a population Y = 100,
2 Y = 43.0, we have 2 (a) n = 100, Y =