Questions from General Economics

Q: Suppose at your university you are asked to find the relationship between

Suppose at your university you are asked to find the relationship between weekly hours spent studying (study) and weekly hours spent working (work). Does it make sense to characterize the problem as i...

Q: States (and provinces) that have control over taxation sometimes reduce

States (and provinces) that have control over taxation sometimes reduce taxes in an attempt to spur economic growth. Suppose that you are hired by a state to estimate the effect of corporate tax rates...

Q: Consider the savings function sav =  +  inc +

Consider the savings function sav =  +  inc + u, u =
.e, where e is a random variable with E(e) = 0 and Var(e)=
. Assume that e is independent of inc. a. Show that E(u|inc) = 0, so that the key...

Q: Consider the standard simple regression model y = ( + (1x

Consider the standard simple regression model y = ( + (1x + u under the Gauss-Markov Assumptions SLR.1 through SLR.5. The usual OLS estimators and
are unbiased for their respective population parame...

Q: a. Let
and
be the intercept and slope from

a. Let
and
be the intercept and slope from the regression of yi on xi, using n observations. Let c1 and c2, with c2 ≠ 0, be constants. Let
and b & 1 be the intercept and slope from the regression...

Q: Let
and
be the OLS intercept and slope estimators,

Let
and
be the OLS intercept and slope estimators, respectively, and let ū be the sample average of the errors (not the residuals!). a. Show that
can be written as/, where wi = di/SSTx and di = xi...

Q: Suppose you are interested in estimating the effect of hours spent in

Suppose you are interested in estimating the effect of hours spent in an SAT preparation course (hours) on total SAT score (sat). The population is all college-bound high school seniors for a particul...

Q: Consider the problem described at the end of Section 2.6

Consider the problem described at the end of Section 2.6: running a regression and only estimating an intercept. a. Given a sample {yi: i = 1, 2, . . . ., n}, let b & 0 be the solution to Show...

Q: A problem of interest to health officials (and others) is

A problem of interest to health officials (and others) is to determine the effects of smoking during pregnancy on infant health. One measure of infant health is birth weight; a birth weight that is to...

Q: Use the data in HPRICE1 to estimate the model price =

Use the data in HPRICE1 to estimate the model price = 0 + 1sqrft + bdrms + u, where price is the house price measured in thousands of dollars. a. Write out the results in equation form. b. What...