Exercise 1:

Notation: Var = Variance; sd = standard deviation; cov = covariance; Corr = correlation and E = expected
value

1. Explain briefly three types of data and give an example for each

2. If X = {10, 15, 17, 22, 47, 36, 22}

And Y = { 2, 20, 25, 42, 33, 22, 25}

Find

a. Mean, Median and Mode for X and Y

b. Var(x) , Var(y), sd(x) and sd(y)
c. Cov(x,y), corr (x,y) and Var(x+y)

• Exercise 2:

Assume we have the following data calculated from a regression of y on a

single variable x and a constant over 40 observations.
Data:

 x y  987520, N  40, x  320.5, y  96.75,

i i

 x  4125781, SSE  152.5

2
i

1. Write the econometrics equation

2. Estimate the parameters (b0 and b1)
3. Calculate the s.e of each parameters
4. Write the null hypotheses and alternative hypotheses for each
5. Implement t student
6. Find y hat when x = 400
 Exercise 3:
•

•
•
 ‫ارجو ادخال الجدول التالي الى االكسل ومن ثم نقله الى ستاتا‬

 ‫وعمل التالي‬

‫انحدار متعدد بشكل خطي‬ .1

GDP = β0 + β1 * Fixed capital + β2 *Employment

 ‫عمل انحدار لوغاريتمي‬ .2

Log GDP = α0+ α1 * log Fixed capital + α2 * log Employment

‫كتابة النتائج وتفسيرها احصائيا واقتصاديا‬ .3

Exercise 4:
 Consider the following model:
Y = β0 + β1X + β2A1 + β3A2 +u
where Y = consumption, X = Income, and
A1 = 1 if Age is 25-55, and 0 otherwise;
A2 = 1 if Age >55, and 0 otherwise ;
A3 = 1 if age < 25, and 0 otherwise.
If the estimated function is
Y = 100 + 0.5 X + 0.1A1 – 0.05 A2

Write three equation for consumption

 If age less than 25
 If age between 25 to 55
 And if age more than 55