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Louis
ECON3049 Econometrics : 1
FINAL
1. a) Yi =
Bi +
µi
I =
{ it 0
Ñi=Y
The model 4. 1) is the true
•
• • relationship .
b) di = I -
iv.I calculate ai = I -
ait
Eloi ) .
=
El -
ElÉ¥¥✗ : E¥¥¥
a
=
[ (da) I
f
= -
Since Elxi -
4 =/ o Eloia) =/ 0
Eloi D= f- Etaa) I =/
p
•
: ai is biased
estimator .
d)
e)
Brandon H .
Louis
ECON3049 Econometrics
: 1
FINAL
2 .
Brandon H .
Louis
ECON3049 Econometrics
: 1
FINAL
3 .
Brandon H .
Louis
ECON3049 Econometrics : 1
FINAL
4 . If =
YO -
P
0.01 1- 0.24 -
1.55 , + 3.652 + 4.7 53
a)
Quarter
Q ,
=
70 -0.01 Pt 0.24 -
=
To
-
0.014.1) -10.2400) -
1.5
=
88.489
Quarter2
Q ,
=
70 -0.01 Pt 0.24 -
=
70 -
0.014.1b) + 0.2402) + 36
= 93.988
Quarter 3
Q ,
=
no -0.01 Pt 0.24 -
=
70 -
95.488
=
Quarter 4
Q ,
=
yo -0.01 Pt 0.24 -
=
70 -
0.014.14) -1 0.2403)
=
90.5886
Brandon H .
Louis
ECON3049 Econometrics
: 1
FINAL
4-
c)
d)
Brandon H .
Louis
ECON3049 Econometrics
: 1
FINAL
5. a) Ho :B Bz =P
,
=
,
=
o
H :@ least
,
one
§ =/ 0
b) With DW
being 0742 , this is low and a cause for concern , another form of regression testing is needed .