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)=
Problem Set 4
Exercise 1
1) B3 represents the change in the number of condoms purchased in the follow up
interview, if the patient received their results and tested positive, holding the gender of
the patient, age of the patient, and whether or not the pa

name: <unnamed>
log: /Users/sam/Desktop/Northwestern/Sophomore Year/Winter Quarter/Econ 28
> 1 [Sam Fisher]/Problem Sets/Problem Set 4/ps4.txt
log type: text
opened on: 6 Mar 2017, 15:06:16
. Pwd
command Pwd is unrecognized
r(199);
. use "/Users/sam
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(uiX)=0