Questions from Econometrics

Q: Let Y denote the number of “heads” that occur when

Let Y denote the number of “heads” that occur when two coins are tossed. Assume the probability of a heads is 0.4 on either coin. a. Derive the probability distribution of Y. b. Derive the mean and va...

Q: Compute the following probabilities: a. If Y is distributed

Compute the following probabilities: a. If Y is distributed N (4, 9), find Pr (Y 2). c. If Y is distributed N (1, 4), find Pr (2

Q: Reported the following regression (where standard errors have been added):

Reported the following regression (where standard errors have been added): a. Is the coefficient on BDR statistically significantly different from zero? b. Typically, four-bedroom houses sell for more...

Q: Referring to the Table: a. Construct the R2 for

Referring to the Table: a. Construct the R2 for each of the regressions. b. Show how to construct the homoskedasticity-only F-statistic for testing 4 = 5 = ï&#...

Q: Consider the regression model Yi = 0 + 1X1i +

Consider the regression model Yi = 0 + 1X1i + 2X2i + ui. Transform the regression so that you can use a t-statistic to test a. 1 = 2. b. 1 + 22 = 0. c. 1 + 2 = 1. (Hint: You must redefine the...

Q: Sales in a company are $243 million in 2018 and increase

Sales in a company are $243 million in 2018 and increase to $250 million in 2019. a. Compute the percentage increase in sales, using the usual formula 100 * (Sales2019 - Sales2018)/ Sales2013. Compare...

Q: Consider the regression model Yi = 0 + 1X1i +

Consider the regression model Yi = 0 + 1X1i + 2X2i + 31X(i * X2i) + ui. Show that; a. ∆Y>∆X1 = 1 + 3X2 (effect of change in X1, holding X2 constant). b. ∆Y>∆X2 = 2 + 3X1 (effect of change in...

Q: Derive the expressions for the elasticities for the linear and log-

Derive the expressions for the elasticities for the linear and log-log models.

Q: The discussion following Equation (8.28) interprets the coefficient

The discussion following Equation (8.28) interprets the coefficient on interacted binary variables using the conditional mean zero assumption. This exercise shows that this interpretation also applies...

Q: Suppose a researcher collects data on houses that have sold in a

Suppose a researcher collects data on houses that have sold in a particular neighbourhood over the past year and obtains the regression results in the following table. a. Using the results in column (...