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MACQUARIE
UNIVERSITY
SYDNEY "- AUSTRALIA
SESSION 1 EXAMINATIONS - JUNE 2012
Unit Code and Name: ECON634 —- Econometrics and Business Statistics
Time Allowed: Two hours plus 10 minutes reading time
Total Number of Questions: 25
Instructions:
Part A: Sh

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Candidates are not permitted to remove
Any part of it from the examination room.
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MACQUARIE
UNIVERSITY
END-OF— YEAR EXAMINA TIONS 2 01 1
Unit: ECON63

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MACQUARI E
UNIVERSITY
SYDNEY - AUSTRALIA
SESSION 2 EXAMINATIONS -

MACQUARIE )/ SEAT NUMBER: . ROOM:
UNIVERSITY
This question paper must be returned.
Candidates are not permitted to remove OTHER NAMES .
any part of it from the examination room.
FAMILY NAME .
STUDENT NUMBER .
SESSION 2 FORMAL EXAMINATIONS — NOVEMBER/DECEM

Week 4 Tutorial Solutions
Econometrics and Business Statistics Econ634
1. An investor makes two independent investments and believes the following: Investment 1
will yield a profit of $1000 with probability of 0.6 or a loss of $400 with probability of 0.4

Week 3 Tutorial Solutions
Econometrics and Business Statistics Econ634
1. Consider the experiment of throwing a fair die. Let be the . . which assigns 1 if the
number that appears is even and 0 if the number that appears is odd.
a) What is the sample spac

Week 2 Tutorial Exercises
Econometrics and Business Statistics Econ634
Note to students: We may be unable to get through all the questions in one hour. In that case it remains
your responsibility to finish the entire tutorial as a part of their self-study

Week 1 Tutorial Solutions
Econometrics and Business Statistics Econ634
Note to students: We may be unable to get through all the questions in one hour. In that case it remains
your responsibility to finish the entire tutorial as a part of their self-study

Econ 634 Week 8 Tutorial Questions
1) Answer true of false, with reasons if necessary
a. There is no way of reducing the probability of Type I error without simultaneously
increasing the probability of Type II error.
b. The probability of Type I error is

SEAT NUMBER:
MACQUARIE
University
ROOM:
FAMILY NAME:
This question paper must be returned.
Candidates are not permitted to remove any part
of it from the examination room.
OTHER NAMES:.
STUDENT NUMBER:
FORMAL EXAMINATION PERIOD: SESSION 2, NOVEMBER 2015
E

Week 2 Tutorial Solutions
Econometrics and Business Statistics Econ634
1. Which of the following events are independent?
a. Two flips of a fair coin.
b. Two flips of a biased coin.
c. Rainfall on two successive days.
Solution: a. and b. are independent
2.

Econ 634 Week 8 Tutorial Solutions
1) Answer true of false, with reasons if necessary
a. There is no way of reducing the probability of Type I error without simultaneously
increasing the probability of Type II error.
False, this is possible by increasing

Week 3 Tutorial Exercises
Econometrics and Business Statistics Econ634
Note to students: We may be unable to get through all the questions in one hour. In that case it
remains your responsibility to finish the entire tutorial as a part of their self-study

Econometrics and Business Statistics
Econ634 Week3
Macquarie University
Semester 1, 2016
Econ634 - Econometrics and Business Statistics - G. Milunovich
1
Random Variables
A random variable is a real-valued function defined
over a sample space.
Econ634 - E

Econometrics and Business Statistics
Econ634
Macquarie University
Semester 1, 2016
Econ634 - Econometrics and Business Statistics
1
About Econ634
Econ634 is an introductory, postgraduate unit designed to bring
students with no background in econometrics

Week 11 Tutorial Exercises
Q1.
a. 0 : 3 = 2
We could use an - or a - test for this one since it is a single hypothesis involving only one coefficient.
There is one restriction.
b. 0 : 3 + 4 = 1
Since this involves more than one coefficient, we should use

Week 1 Tutorial Exercises
Econometrics and Business Statistics Econ634
Note to students: We may be unable to get through all the questions in one hour. In that case it
remains your responsibility to finish the entire tutorial as a part of their self-study

Week 4 Tutorial Exercises
Econometrics and Business Statistics Econ634
1. An investor makes two independent investments and believes the following: Investment 1
will yield a profit of $1000 with probability of 0.6 or a loss of $400 with probability of 0.4

Econometrics and Business Statistics
Econ634 Week 4
Macquarie University
Semester 1, 2016
Econ634 - Econometrics and Business Statistics - G. Milunovich
1
Moments: Expected Value
So far we have defined random variables and described
their behaviour with

Econ 634 Week 7 Tutorial Solutions
1
a. Why is an interval estimate better than a point estimate?
An interval estimate provides some information about the reliability of the estimator; a
point estimate does not.
b. What factors determine the width of a co

Econometrics and Business Statistics
Econ634
Macquarie University
Semester 1, 2016
Econ634 - Econometrics and Business Statistics
1
The Addition Rule
When a complex event consists of two or more mutually exclusive
simple events we may use the 3rd axiom o

Econometrics and Business Statistics
Econ634 Week 8
Macquarie University
Semester 1, 2016
Econ634 - Econometrics and Business Statistics - G. Milunovich
1
Introduction
The purpose of estimation is to consider the entire parameter space (all
possible valu

Week 11 Tutorial Exercises
1. Assume the following model is estimated
= 1 + 2 2 + 3 3 + 4 4 + 5 5 +
Which of the following hypotheses can be tested using a -test? Which of them can be tested
using an - test? In each case state the number of restriction.

Econ 634 Week 7 Tutorial Questions
1
a. Why is an interval estimate better than a point estimate?
b. What factors determine the width of a confidence interval?
2
Explain the difference between an estimate and an estimator. Is it true that a good estimator

Econ 634 Week 9 Tutorial Questions
Copy the dataset ceosal.xls from iLearn to your computer. The file contains 209 observations for the year
1990 on the annual salaries of chief executive officers in thousands of dollars (SALARY), and the average
return o

Econometrics and Business Statistics
Econ634 Week 7
Macquarie University
Semester 1, 2016
Econ634 - Econometrics and Business Statistics - G. Milunovich
1
Point Estimation
Typically we have some sample information but do not know the population
parameters

Econometrics and Business Statistics
Econ634 Week 9
Macquarie University
Semester 1, 2016
1
Relationships Between Random
Variables
In weeks 1 8 we discussed a number of ways of capturing relationships between
random variables
Joint distribution captures

Econometrics and Business Statistics
Econ634 Week 10
Macquarie University
Semester 1, 2016
Topics Covered:
More on the interpretation of regression parameters
Dummy variables
Functional forms
Multivariate regression in matrix notation
1
More on the Interp

Econometrics and Business Statistics
Econ634 - Weeks 11, 12 & 13
Macquarie University
Semester 1, 2016
Topics:
Adjusted 2
-test
Diagnostic Tests
A Problem with
2
2 is defined in terms of variation about the mean of so that we cannot
compare 2 from model