Scribd
Upload
10 views3 pages

Problem Set 2

The document presents a problem set for an Econometrics I course, covering topics such as sample calculations, linear regression models, and the analysis of relationships between variables. It includes specific problems requiring the application of econometric principles to demonstrate mathematical relationships and predictions based on given data. Additionally, it addresses experimental design in measuring the effects of time pressure on exam performance.

Uploaded by

agueyesall
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
10 views3 pages

Problem Set 2

The document presents a problem set for an Econometrics I course, covering topics such as sample calculations, linear regression models, and the analysis of relationships between variables. It includes specific problems requiring the application of econometric principles to demonstrate mathematical relationships and predictions based on given data. Additionally, it addresses experimental design in measuring the effects of time pressure on exam performance.

Uploaded by

agueyesall
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Problem set 2

Econometrics I

1. Given the following sample

Y1 = 3, Y2 = 1, Y3 = 2, Y4 = 7, Y5 = 6;
X1 = 12, X2 5, X3 = 3, X4 = 1, X5 = 5;

show that
5
X 5
X
2
Xi X = Xi X Xi ;
i=1 i=1
5
X 5
X 5
X
Xi X Yi Y = Xi X Yi = Yi Y Xi ;
i=1 i=1 i=1
5
X 5
X
2 2
Xi X = Xi 2 5X ;
i=1 i=1
5
X 5
X
Xi X Yi Y = Xi Yi 5XY ;
i=1 i=1

X5 X5
where X = Xi =5, Y = Yi =5:
i=1 i=1

2. For an arbitrary sample a1 ; ::::; an , b1 ; ::::; bn , show that


n
X n
X
2
(ai a) = (ai a) ai ;
i=1 i=1
n
X Xn n
X
(ai a) bi b = (ai a) bi = bi b ai ;
i=1 i=1 i=1
n
X Xn
2
(ai a) = ai 2 na2 ;
i=1 i=1
n
X n
X
(ai a) bi b = ai bi nab;
i=1 i=1
Xn Xn
where a = n 1 ai , b = n 1
bi . In view of the previous results,
i=1 i=1
under which circumstances
n
X n
X
(ai a) bi b = ai bi ?
i=1 i=1

1
3. Given a sample X1 ; ::::; Xn , where n = 100, the following calculations are
made
X100 X100
Xi2 = 50, Xi = 100:
i=1 i=1

Are these calculations correct?

4. Consider the simple linear regression model

Yi = 0 + 1 Xi + ui , i = 1; :::; 12:

The following sums were obtained from 12 pairs of observations on Y and


X:
12
X 12
X 12
X 12
X
Xi2 = 314, Xi Yi = 212, Yi = 24, Xi = 36:
i=1 i=1 i=1 i=1

Compute the ordinary least squares estimates (OLS) of 0 and 1 ( b 0 ; b 1 ).

5. Suppose that a researcher wants to analyze the causal relationship between


class size (CS) and average test score (ATS). For this purpose, she collects
data for 100 classes of 6th year Primaria students, and based on that data
she estimates a simple linear model by OLS, obtaining
dS i = 520:4
AT 5:82CSi :

Answer the following questions:

a. If a classroom has 22 students, which would be your prediction for


the mean average test score in that classroom?
b. On year ago a classroom had 19 students, but this number has in-
creased to 23 students this year. Based on the estimated model,
which is your prediction for the change in the mean average test
score due to the increase in the number of students?
c. The sample mean of the class size variable is 21.4. Calculate the
sample mean corresponding to the average test score variable.

6. A teacher decides to perform an experiment to measure the e¤ect of time


pressure on exam performance. For this purpose, she distributes to her 400
students an identical exam, but she assigns to some students 90 minutes
to complete it, whereas some other students are given 120 minutes. Time
is assigned randomly to students (as a result of tossing a coin). Thus, the
teacher collects information on the following variables:

Yi : score achieve by student i (between 0 and 100)

Xi : time given to student i to complete the exam (90 or 120)

2
In order to analyze the question of interest, the teacher builds the following
regression model
Yi = 0 + 1 Xi + ui :
Answer the following questions:

a. Interpret the error term ui . Explain why di¤erent students might


have di¤erent error terms.
b. Explain why the assumption E ( ui j Xi ) = 0 appears to be sensible in
the present setting.
c. The estimated model is

Ybi = 49 + 0:24Xi :

Calculate the predicted mean of Yi for students which were given 90


minutes to complete the exam. Repeat the calculation for those which
were given 120 minutes. Which will be the prediction if students had
been given 150 minutes? Finally, calculate which is the estimated
mean gain (in score) per 10 additional minutes to complete the exam.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy