CONVEXSETS-ecoblisspoint.docVIP

Introductory econometrics Question Bank Ramjas College Mid Term Examination 2008 1. (a) Let . A random sample of 3 observations was obtained from this population. Consider the following estimator of and Find (i) if is an unbiased estimator of ? What about ? (ii) If estimators are unbiased, which one would you choose? (b) Suppose a new standardized test is given to 100 randomly selected third grade students in New Delhi. The sample average score is Y-bar on the test is 58 points and the sample standard deviation, sy is 8 points. Suppose the same test is given to 200 randomly selected third graders from Mumbai, producing a sample average of 62 points and a sample standard deviation of 11 points. (1) Construct a 90% confidence for difference in mean scores between New Delhi and Mumbai? (2) What is the standard error of the difference in the two sample means? Or (a) Let X and Y be two random variables, where and and otherwise. (1) what is the correlation between X and Y and (2) Are X and Y independent? And (3) what do you conclude about the relationship between correlation and independence? (b) The following table gives the joint PDF of the discrete random variables X and Y X -2 0 2 3 Y 3 0.27 0.08 0.16 0 6 0 0.04 0.10 0.35 Find (I) and (II) variance 2. Suppose that a variable Y depends upon a variable X with a relationship , where u is a disturbance term that satisfies the Gauss-Markov conditions. (a) Explain in principle how would one derive the ordinary least squares (OLS) estimator of (b) Explain in general terms why OLS is an attractive estimation procedure if the disturbance term in the model satisfies the GM conditions? Or Explain what is correct, mistaken, confused or incomplete in the following statements A linear regression model means a model linear in the variables In a regression model, a stochastic regressor is an explanatory variable that has a random component. The stochastic error term and the residual term mean the same