Problem 3 Appendia E

- We Rnew thai $ = (22) 'Zy

Them § = & (XAS (XANT (XA) Y
= LA (XIA J- ^ X'A'y

because
because B = (X) My
Therefone
= A-1 B
we know shat ft - * B and it - 2,8.
Obe plug 2 and A inro the second euction
Then
because A. A-A
This
Sherjore ÿt = it
We hmon sher the einimicred acriance morns from he

regression of yand 2 is 82(22] and of is heerrer

variance animore from the regnestion
From the previour querion, we hove ye -9 +
Wehar
which implies hethe
firedresiduds
were gain
aneHethe
suesame.
rene on dele the some ;
( because
Thars also because she dependent concble is he sene for the tau.
regressions
Thus 82 82
woe know then (22) -
Then a° (22)1 .
 iv) We know rid The
the B, are oblaimed from hieregnes ion af
(1.!y onX A cohere
"an daam she digional diggonce mahit
a.,.
We Rave
B= A^B
A is their He Rik digronce mornin with 1, a ; . a""
dovom ils diagonal
Multiplication showstherthe finer element of p
and the j element is 6 1 9, j=
[V). we knowurher the extimered acriance of the mamir B is
d'e A " (XXS " (AT)
" A " is a symmetric digrand molis
Thur, the estimded acrience of B; is he jt diggonal element
af as A" (XX I" Air , whach s easily seen to be equal to a tai reg
Where gi is the jih diggone elemeni of (xX*

Thus Se (Bj ) / 19 |

Vi The t stalinic forB is

B / se (FUl: ( Pj /aj / (de (881 / 191)
the absolute value is
which is juar the abschure odue of fie + solitic of is
If aj so , the t stalidlis are identical
the + exchilics are oppolile in sign
 Exercice 9 Chapier
y = Ron Sod + B42 , Sid. 2 + u
let u = 0
when d= O we can vunire So(21 =Po + Piz
when d= 1Ba = 66 + BI2 + 8,2
INhur g.(2) -
(Bo +8. 1+ (Br+ 81) 2
Let 8+0
(Son 2 ° = 80 )
Si
80 (2) = 81 (211 E
E 3 1 2" - So - 8, 2° - B12 * - 6
80 - 8, z° = o
Thus fo (2) 8624)
(=) So
бл

z* is positif
posingonly
one ififso is megariue, which meen the
So and Si must have opposive signs
Tal. log (wages +2289 0,357 female + 0, so tolcall
0,030 female.
for female: O
log (aege) 2,289 + 0,80 torcOll
if femde = 1
logiogger 2,289. 0,357, 8. 50, 0,030) torcoll
2,283 - 0,857 torcall.

§ ° (torcall) = J. (rokeoll) G tolock + =

totcoll " 357
+ 0,6. 03
torco @*= 11, 9
Shus 11,9, the predided Dale fon log arge is
if torfon
the San collboth men and aman
(V). The eshinored year of collegegratically
where women catch up rat
relevant
is much
Whilendeed.,
tau 12 years
approximclivel
On Pemald. torcele also show thot
The cariocred coefficient
Er highe lever of college bur it gnever
the gapp. is reduced
Close the difference inm gredicted
gredicted, las dog.
At. 4 year; grollege leis for
_0357 4= 237 which is
women
FOR • years of eduction, heestimated difference
- 0,018 1.8 % less Ron man is
- 0,357+ 0,030 x. 11, 9
which merns tar avanen eonn cbouk
ever fon approximative cy 12 yeans afeducction
Therefore, see shicely. women can't get enouch уĸоля of
College ermings ccIch up hose ofmen

Problem @ Chapter 8
We know Har for uncorrelavedrandom conicales the coronas
the sum sun of the uniances
Thee van (fi + Viet = vor (fi) , van (vis
= 83 + out
83
van (fi , Vies = the
let's suppose iet for efg vie and vig are uncorrested
1)._
we have Mie = fi + vie
vig = gi . Vig
Thur car (nie, vig) = coV ( Sit vie , Sivigt
= cor (8 - St + COM (S. vist + con (vie, fil + con (vie, vig )
Ode Rmovu that vie and vig are un correlated

fi and vis and vig ane uncorrelored

Thus GOv (ji, vigI = 0 con (Si, vie | = c
Therefong, and
Cov (vie, lig) = con (84 ji) + 0, 0, 0.
= varfil
,2
 dit Mi 1 Sni Mie
êt
= mi-1 dEn (Si + vie)
- vie)

ü = fi + mi? En vie
is uncorrelared sink vie
This vor (Vi) = vch (fil + van (mi" Evie]
99
mi
We , shemations. Whar the grandand woeighting ignores he

Thus,the
Pundion is ablained by Re barience fam
aritings,"
Ajvalid, washing fumet
51. (or 10, = Sp
Botovera,dreinbrischie proper seeight reguine do ehhimde the
ratid Oje
Therefone im ane ĸанас 32 ве is somall, so her He firm
When themi are then Re Ogr individud One,
effeck is anone)importent
cage weightr to del barge gonna con be improprieto
thus,correck weight is close to
arraching

ProblemS Chapter Thar fon Bach coefficient, the usucl standand

i) NO, • doe malice. Che veryclose

errons and Reteraskedasticing robun and

Gold 138, 46
ill. The turning point in the guadatic is. 12+ 900026

Ar this paint, corcher yecr of gee reduce the probabill gsmoking

Malaing Pars Fithree factonit is the

renaurant sinching gluchen fixed, a has
0, 0101 less chanderg smoking.
0, 101 × 1 = олол
dose to the boll of probability Of smoking when Ravine
5118
fom more yeau of querish i;
IM. If cigpric - 64, 44 incomes6.5.00 , educ = 16.
age= 77 restaurn = 0 , cohite = a and Simches - O
Then smöhes = 0.056
0, 656_ 0,069 x log (61,44) + 0,012 log (6,500)
0,29 + 16 + 0,020x17 = 0,00026 x772
Smöker 0,0082
Therefore Lette crimded probability of ameling for his person is
Closero zero