Economics 472 Problem Set #6 Note: For all of the computer-based exercises, please include the regression output (you don't need to include any graphs) with your completed problem set. (1) Using the baseball data provided on the course website, run the mu
Economics 472 Problem Set #4 (1) Consider the regression of y on just a constant term : (no x included) yi = 1 + ui .
(1a) Show that the OLS estimate of 1 is just the sample mean of y: ^ 1 = y. (Hint: Minimize
n i=1
u2 = i
n i=1 (yi
- 1 )2 by choosing 1 .
Problem Set #1 (1) The following table gives the joint probability distribution p(X, Y ) of random variables X and Y .
Y 1 2 3 4
1 .02 .03 .00 .09
X 2 .04 .18 .02 .18
3 .12 .04 .10 .18
Determine the following: (a) Do the entries of the table satisfy the c
Economics 472 Problem Set #5 (1) Stock and Watson, 4.1 parts (c) and (d). Note: for part (d), you are asked to calculate the p-value associated with the two-sided test that the coecient on class size equals zero. To do this, rst calculate the value of the
Economics 472 Final Problem Set The final problem set for the course asks you to write a small (ideally between 4 and 5 pages) empirical paper. In this paper, you are to perform and correctly interpret the output from a regression analysis. The topic for
Government Debt1
We take a break from straight theory to look at governmental debt, obviously a relevant issue in
the United States. We begin by looking at the mechanics of decits and debt. The budget decit is
simply the difference between what the govern
Economics 472 Problem Set #7 (1) Using data from the course website (under the link related to the production function data), run a regression of log output on log labor and log capital (i.e., estimate the Cobb-Douglas production function). To do this, rs
Economics 472 Problem Set #8 (1) Load the panel baseball data (panelbb) from the course website. This expanded baseball data set contains a set of fixed effects for each team. In particular, for each team, the data set contains wins, era, batting average
Economics 472 Problem Set #10 (1) Consider a simple model to estimate the eect of personal computer ownership (denoted PC) on college grade point average (GPA): GP Ai = 0 + 1 P Ci + ui . In this model, PC is a binary variable taking the value 1 if the stu
Economics 472 Problem Set #9 (1) Stock and Watson, 9.1. Note: You will need to look up values of the Normal cumulative density function on pages 642-643 of your book to carry out this exercise. (2) Stock and Watson, 9.2. Note: You will have to calculate t
Problem Set #2 (1) Stock and Watson, 2.2
(2) Stock and Watson, 2.8
(3) Stock and Watson, 2.10
(4) Show that Cov(aX + b, cY + d) = acCov(X, Y ) for any two random variables X and Y , and constants a, b, c and d. (Hint: Use the formula for the covariance in