John Chao
Spring 2012
Due: 2/23/2012
Economics 422
Econometrics I
Problem Set 1
1. In a given population of two-earner male/female couples, male earnings have a mean of
$40; 000 per year and a standard deviation of $12; 000. Female earnings have a mean of
John Chao
Spring 2012
Due Date: 3/15/2012
Economics 422
Econometrics I
Problem Set 2
1. Suppose Yi , i = 1, 2, ., n are i.i.d. random variables, each distributed N (10, 4).
a. Let Y = n1 n=1 Yi denote the sample mean. Compute Pr 9.6 Y 10.4 when (i)
i
n =
John Chao
Spring 2012
Due Date: 5/10/12
Economics 422
Econometrics I
Problem Set 4
1. Data were collected from a random sample of 220 home sales from a community in 2003. Let
Price denote the selling price (in $1000), BDR denote the number of bedrooms, Ba
John Chao
Spring 2012
Due Date: 4/19/2012
Economics 422
Econometrics I
Problem Set 3
1. Use the data in WAGE2.DTA to estimate a simple regression explaining monthly salary
(wage) in terms of IQ score (IQ).
(a) Find the average salary and average IQ in the