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    Practice Questions

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    rajuk150256
    This document contains 9 practice questions related to introductory econometrics. The questions cover topics such as: [1] proving properties of the OLS estimators; [2] deriving the equation for a two-variable linear regression model; [3] estimating direct and reverse linear regressions from sample data and determining if they are the same; [4] testing the statistical significance of partial slope coefficients; [5] estimating a regression model and calculating standard errors; [6] deriving an expression for the coefficient of determination; [7] estimating multiple regression coefficients and their variances; [8] filling in missing values in a regression output and testing hypotheses; and [9] showing that OLS estimators are linear

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    Practice Questions

    Uploaded by

    rajuk150256
    18 views2 pages
    This document contains 9 practice questions related to introductory econometrics. The questions cover topics such as: [1] proving properties of the OLS estimators; [2] deriving the equation for a two-variable linear regression model; [3] estimating direct and reverse linear regressions from sample data and determining if they are the same; [4] testing the statistical significance of partial slope coefficients; [5] estimating a regression model and calculating standard errors; [6] deriving an expression for the coefficient of determination; [7] estimating multiple regression coefficients and their variances; [8] filling in missing values in a regression output and testing hypotheses; and [9] showing that OLS estimators are linear

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    Practice Questions (1)

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    This document contains 9 practice questions related to introductory econometrics. The questions cover topics such as: [1] proving properties of the OLS estimators; [2] deriving the equation for a two-variable linear regression model; [3] estimating direct and reverse linear regressions from sample data and determining if they are the same; [4] testing the statistical significance of partial slope coefficients; [5] estimating a regression model and calculating standard errors; [6] deriving an expression for the coefficient of determination; [7] estimating multiple regression coefficients and their variances; [8] filling in missing values in a regression output and testing hypotheses; and [9] showing that OLS estimators are linear

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    18 views2 pages

    Practice Questions

    Uploaded by

    rajuk150256
    This document contains 9 practice questions related to introductory econometrics. The questions cover topics such as: [1] proving properties of the OLS estimators; [2] deriving the equation for a two-variable linear regression model; [3] estimating direct and reverse linear regressions from sample data and determining if they are the same; [4] testing the statistical significance of partial slope coefficients; [5] estimating a regression model and calculating standard errors; [6] deriving an expression for the coefficient of determination; [7] estimating multiple regression coefficients and their variances; [8] filling in missing values in a regression output and testing hypotheses; and [9] showing that OLS estimators are linear

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    of 2

    SGTB Khalsa College

    Delhi University

    Name of Course: B.A. (Hons.) Economics


    Name of Paper: Introductory Econometrics

    Practice Questions
    Instructions:

    All steps in the answer must be clearly shown.


    For intermediate calculations, figures should be rounded off to 4 decimal places. For final answer, figures
    should be rounded off to 2 decimal places.

    1. Prove the following:


    (a) Σei xi = 0
    (b) Σei Ybi = 0
    2. Derive the equation of the OLS estimators for a two-variable model.
    3. Consider the following data:

    Y 70 65 90 95 110 115 120 140 155 150


    X 80 100 120 140 160 180 200 220 240 260

    Estimate the direct (Y on X) and reverse (X on Y ) linear regressions from the above data. Are these
    regressions the same? Explain.
    4. Based on the sample of 38 countries, the following regression was estimated:

    Ybi = 414.4583 − 0.0523GDPi − 50.0476P OPi


    se (266.4583) (0.0018) (9.9581)
    t (1.553) (−28.242) (−5.0257)

    where Y = Expenditure on Education (billions rupees), GDP = GDP (billions rupees) and P OP =
    Population (billions). Test whether the partial slope coefficients are statistically significant at 5% level of
    significance.
    5. You are given the following data based on 10 observations:

    ΣXi = 1700 ΣYi = 1100 ΣXi Yi = 205, 500


    ΣXi2 = 322, 000 ΣYi2 = 132, 100

    (a) Estimate the regression.


    (b) Find the standard error of regression and variances of the estimators.

    6. For the two variable regression model Yi = B1 + B2 Xi + ui show that

    (Σyi ybi )2
    r2 =
    (Σyi 2 )(Σybi 2 )

    7. You are given the following data based on 15 observations: (5)

    Page 1 of 2
    Y = 367.693 X 2 = 402.760 X 3 = 8.0
    Σyi2 = 66, 042.269 Σx22i = 84, 855.096 Σx23i = 280.0
    Σyi x2i = 74, 778.346 Σyi x3i = 4, 250.9 Σx2i x3i = 4, 796.0

    Estimate the three multiple regression coefficients and calculate their variances.
    8. Consider the following regression:

    Ybi = −66.1058 + 0.0650Xi r2 = 0.9460


    se (10.7509) ( ) n = 20
    t ( ) (18.73)

    (a) Fill in the missing numbers and show your calculations.


    (b) Would you reject the hypothesis that true B2 is zero at 5% level of significance?

    9. Show that the OLS estimators, b1 and b2 are linear estimators. Also show that these estimators are linear
    functions of the error term ui .

    ***

    Page 2 of 2

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