Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 3 views

    Book Problems

    Uploaded by

    Imran Umar

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Book Problems

    Uploaded by

    Imran Umar
    3 views9 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    3 views9 pages

    Book Problems

    Uploaded by

    Imran Umar

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 9

    i) Income, age, and family background (such as number of siblings) are just a few

    possibilities.

    ii) Not if the factors we listed in part (i) are correlated with educ. Because we would like to
    hold these factors fixed, they are part of the error term
    Student GPA
    N Y
    1 2.8
    2 3.4
    3 3
    4 3.5
    5 3.6
    6 3
    7 2.7
    8 3.7
    E 8 25.7

    Y BAR 3.2125
    X BAR 25.875

    B1 0.102198
    B0 0.568127

    Y= 0.5681 + 0.102198x
    ACT
    X E XY E X2 E (X)2 Y Hat Y - Y Hat ( Y - Y Hat)2 Y - Y Bar
    21 58.8 441 2.71 0.09 0.01 -0.4125 0.170156
    24 81.6 576 3.02 0.38 0.14 0.1875 0.035156
    26 78 676 3.23 -0.23 0.05 -0.2125 0.045156
    27 94.5 729 3.33 0.17 0.03 0.2875 0.082656
    29 104.4 841 3.53 0.07 0.00 0.3875 0.150156
    25 75 625 3.12 -0.12 0.02 -0.2125 0.045156
    25 67.5 625 3.12 -0.42 0.18 -0.5125 0.262656
    30 111 900 3.63 0.07 0.00 0.4875 0.237656
    207 670.8 5413 42849 U Hat 0.43 1.02875
    SSR SST

    R2 1- SSR/SST
    0.577424 Variation
    hhhhhhhhhh
    0.09
    0.38
    + 0.102198x

    nnnn
    Cigs = 0
    bwght = 119.77 - 0.514(0)
    119.77

    bwght = 119.77 - 0.514(20)


    109.49

    Difference 10.28
    9% Drop

    ii) Not necessarily. There are many other factors that can affect birth weight, particularly
    overall health of the mother and quality of prenatal care. These could be correlated with
    cigarette smoking during birth.

    iii) When bwght = 125

    125 = 119 - 0.514x


    x -10.1751
    it shows what happens when we are trying
    to predict something as complicated as birth weight with only a single explanatory variable.

    iv) 1179.8 Did not smoke


    i) The intercept implies that when inc = 0, cons is predicted to be negative $124.84. This, of
    course, cannot be true, and reflects that fact that this consumption function might be a poor
    predictor of consumption at very low-income levels. On the other hand, on an annual basis,
    $124.84 is not so far from zero.

    ii) cons = -124.84 + 0.853 inc


    25465.16 Dollar

    iii) Let X values as below

    iii) X 1000 10000 20000 30000 40000


    MPC 0.853 0.853 0.853 0.853 0.853
    APC 0.72816 0.840516 0.846758 0.848839 0.849879
    Yes. If living closer to an incinerator depresses housing prices, then being farther away
    increases housing prices.

    If the city chose to locate the incinerator in an area away from more expensive
    neighborhoods, then log(dist) is positively correlated with housing quality. This would violate
    SLR.3, and OLS estimation is biased.

    Size of the house, number of bathrooms, size of the lot, age of the home, and quality of
    the neighborhood (including school quality), are just a handful of factors.

    You might also like