Additional Questions Econ 281
1. True/False:
a. This question refers to the estimation with Panel Data. We can estimate
the effect of race on wages using the Entity demeaned model but not the
Differenced Model
FALSE. Neither model can do that.
b. The esti
Practice Questions Econ 281
(Answers will follow in due time)
Probability and Statistics Review
1. True/False
a) If X~(8,50) then P(X>8)=.5
FALSE. We dont know the distribution of X so we cannot look up probabilities.
b) If X~(8,50) and N=500 then P(X>8)=
Regression Analysis with Multiple
Independent Variables
Introduction to Econometrics Econ
281
1
Introduction
Remember the error term ui
Yi = 0 + 1 X i + u i
It contains all other variables that effect our
dependent variable Y
We assumed that E(ui|X)=0