Questions from Econometrics

Q: Suppose you are hired by a university to study the factors that

Suppose you are hired by a university to study the factors that determine whether students admitted to the university actually come to the university. You are given a large random sample of students w...

Q: Write a two-equation system in “supply and demand form

Write a two-equation system in “supply and demand form,” that is, with the same variable yt (typically, “quantity”) appearing on the left-hand side: y1 = 1y2 + 1z1 + u1 y1 = 2y2 + 2z2 + u2. (i) If...

Q: we estimated an equation to test for a tradeoff between minutes per

we estimated an equation to test for a tradeoff between minutes per week spent sleeping (sleep) and minutes per week spent working (totwrk) for a random sample of individuals. We also included educati...

Q: The following table contains monthly housing expenditures for 10 families.

The following table contains monthly housing expenditures for 10 families. (i) Find the average monthly housing expenditure. (ii) Find the median monthly housing expenditure. (iii) If monthly housing...

Q: Suppose that a high school student is preparing to take the SAT

Suppose that a high school student is preparing to take the SAT exam. Explain why his or her eventual SAT score is properly viewed as a random variable.

Q: Use the data set GPA1 to answer this question. It was

Use the data set GPA1 to answer this question. It was used in Computer Exercise C13 in Chapter 3 to estimate the effect of PC ownership on college GPA. (i) Run the regression colGPA on PC, hsGPA, and...

Q: In Example, quantity of compact discs was related to price and

In Example, quantity of compact discs was related to price and income by quantity = 120 - 9.8 price 1 .03 income. What is the demand for CDs if price = 15 and income = 200? What does this suggest abou...

Q: Much is made of the fact that certain mutual funds outperform the

Much is made of the fact that certain mutual funds outperform the market year after year (that is, the return from holding shares in the mutual fund is higher than the return from holding a portfolio...

Q: Suppose that the return from holding a particular firm’s stock goes from

Suppose that the return from holding a particular firm’s stock goes from 15% in one year to 18% in the following year. The majority shareholder claims that “the stock return only increased by 3%,” whi...

Q: (i) Estimate the model children = 0 +

(i) Estimate the model children = 0 + 1age + 2age2 + 3educ + 4electric + 5urban + u and report the usual and heteroskedasticity-robust standard errors. Are the robust standard errors always bigg...