Questions from Econometrics

Q: Suppose all of the regression assumptions in Key Concept 4.3

Suppose all of the regression assumptions in Key Concept 4.3 are satisfied except that the first assumption is replaced with E (ui | Xi) = 2. Which parts of Key Concept 4.4 continue to hold? Which ch...

Q: a. A linear regression yields ^1 = 0. Show

a. A linear regression yields ^1 = 0. Show that R2 = 0. b. A linear regression yields R2 = 0. Does this imply that ^1 = 0?

Q: Suppose a researcher, using data on class size (CS)

Suppose a researcher, using data on class size (CS) and average test scores from 50 third-grade classes, estimates the OLS regression a. Construct a 95% confidence interval for b1, the regression slop...

Q: Let Xi denote a binary variable, and consider the regression Yi

Let Xi denote a binary variable, and consider the regression Yi = 0 + 1Xi + ui. Let Y0 denote the sample mean for observations with X = 0, and let Y1 denote the sample mean for observations with X =...

Q: A random sample of workers contains nm = 100 men and nw

A random sample of workers contains nm = 100 men and nw = 150 women. The sample average of men’s weekly earnings is €565.89, and the standard deviation; is â&#...

Q: Derive the variance of b^0 under homoscedasticity given in Equation

Derive the variance of b^0 under homoscedasticity given in Equation (5.28). Data from Equation 5.28:

Q: In a given population of two-earner male-female couples

In a given population of two-earner male-female couples, male earnings have a mean of $50,000 per year and a standard deviation of $15,000. Female earnings have a mean of $48,000 per year and a standa...

Q: Suppose (Yi, Xi) satisfy the least squares assumptions in

Suppose (Yi, Xi) satisfy the least squares assumptions in Key Concept 4.3 and, in addition, ui is distributed N (0, 2u) and is independent of Xi. a. Is ^1 conditionally unbiased? b. Is ^1 the best...

Q: Suppose Yi = Xi + ui, where (ui,

Suppose Yi = Xi + ui, where (ui, Xi) satisfy the Gauss–Markov conditions. a. Derive the least squares estimator of b, and show that it is a linear function of Y1, ……, Yn. b. Show that the estimator i...

Q: A researcher has two independent samples of observations on (Yi,

A researcher has two independent samples of observations on (Yi, Xi). To be specific, suppose Yi denotes earnings, Xi denotes years of schooling, and the independent samples are for men and women. Wri...