ECN 102 Midterm: ECN 102 Midterm 2 Version A Spring 2015 Solutions
Document Summary
Econ 102 (analysis of economic data): cameron spring 2015. Version a u for all i: i=1(xi (cid:0) (cid:22)x)(yi (cid:0) (cid:22)y)= 1 i=1(xi (cid:0) (cid:22)x)2 = sxy=s2 n(cid:0)1 pn n(cid:0)1 pn x = 1=4 = 0:25. 1. (a) here se((cid:22)x) = sd(x)=pn = 400=p100 = 40:approximate 95% ci is 50 (cid:6) 2 (cid:2) 40 = ((cid:0)30; 130): (b) 1. Var[uijxi] = (cid:27)2: independent errors. ui independent of uj for all i 6= j. (c) assumptions 1 and 2. (d) rxy = sxy=[sx (cid:2) sy] = 1=[p4 (cid:2) p1] = 1=2 = 0:5: (e) b2 = 1. = 1:3735 (cid:6) invttail(48; :005) (cid:2) :2336 = 1:3735 (cid:6) 2:6822 (cid:2) :2336 = 1:3735 (cid:6) :6266 = (:7469; 2:0001): (d) h0 : (cid:12) 2 = 0 against ha : (cid:12) 2 6= 0. Since t = 1:599 < t:01;48 = invttail(48; :01) = 2:407 we do not reject h0.
