100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank - for Introduction to Econometrics 3rd Edition by H STOCK JAMES & W. WATSON MARK, All Chapters |Complete Guide A+ $18.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. Introduction To Econometrics
  4.  
  5. Introduction to Econometrics

Exam (elaborations)

Test Bank - for Introduction to Econometrics 3rd Edition by H STOCK JAMES & W. WATSON MARK, All Chapters |Complete Guide A+
 6 views  0 purchase
  • Course
  • Introduction to Econometrics
  • Institution
  • Introduction To Econometrics

Test Bank - for Introduction to Econometrics 3rd Edition by H STOCK JAMES & W. WATSON MARK, All Chapters |Complete Guide A+

Preview 4 out of 131  pages

Document information

  • October 18, 2024
  • 131
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • for
  • test bank for introduction to econometrics 3rd e
  • test bank
  • introduction to econometrics 3rd edition
  • by h stock james w watson mark

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (5)

Written for

  • Introduction to Econometrics
  • Introduction to Econometrics

Seller

avatar-seller
testsolution

Reviews received

Content preview

N
O
TI
LU
SO
ST
TE

, N
O
TI
LU
SO
ST
TE

, N
O
TI
LU
SO
ST
TE

, 4 Stock/Watson • Introduction to Econometrics, Third Edition


2.5. Let X denote temperature in F and Y denote temperature in C. Recall that Y = 0 when X = 32 and
Y =100 when X = 212; this implies Y = (100/180)  ( X − 32) or Y = −17.78 + (5/9)  X. Using Key
Concept 2.3, X = 70oF implies that  Y = −17.78 + (5/9)  70 = 21.11C, and X = 7oF implies
Y = (5/9)  7 = 3.89C.

2.6. The table shows that Pr ( X = 0, Y = 0) = 0037, Pr ( X = 0, Y = 1) = 0622,
Pr ( X = 1, Y = 0) = 0009, Pr ( X = 1, Y = 1) = 0332, Pr ( X = 0) = 0659, Pr ( X = 1) = 0341,
TE
Pr(Y = 0) = 0046, Pr (Y = 1) = 0954.
(a) E(Y ) = Y = 0  Pr(Y = 0) + 1 Pr (Y = 1)
= 0  0046 +1 0954 = 0954
#(unemployed)
(b) Unemployment Rate =
#(labor force)
ST
= Pr (Y = 0) = 1 − Pr(Y = 1) = 1 − E(Y ) = 1 − 0954 = 0.046
(c) Calculate the conditional probabilities first:
Pr ( X = 0, Y = 0) 0037
Pr (Y = 0| X = 0) = = = 0056,
Pr ( X = 0) 0659
Pr ( X = 0, Y = 1) 0622
SO
Pr (Y = 1| X = 0) = = = 0944,
Pr ( X = 0) 0659
Pr ( X = 1, Y = 0) 0009
Pr (Y = 0| X = 1) = = = 0026,
Pr ( X = 1) 0341
Pr ( X = 1, Y = 1) 0332
Pr (Y = 1| X = 1) = = = 0974
Pr ( X = 1) 0341
LU
The conditional expectations are
E(Y|X = 1) = 0  Pr (Y = 0| X = 1) +1 Pr (Y = 1| X = 1)
= 0  0026 + 1 0974 = 0974,
E(Y|X = 0) = 0  Pr (Y = 0| X = 0) + 1 Pr (Y = 1|X = 0)
= 0  0056 +1 0944 = 0944
TI
(d) Use the solution to part (b),
Unemployment rate for college graduates = 1 − E(Y|X = 1) = 1 − 0.974 = 0.026
Unemployment rate for non-college graduates = 1 − E(Y|X = 0) = 1 − 0.944 = 0.056
O
(e) The probability that a randomly selected worker who is reported being unemployed is a
college graduate is
Pr ( X = 1, Y = 0) 0009
Pr ( X = 1|Y = 0) = = = 0196
N
Pr (Y = 0) 0046

The probability that this worker is a non-college graduate is
Pr ( X = 0|Y = 0) = 1 − Pr ( X = 1|Y = 0) = 1 − 0196 = 0804




©2011 Pearson Education, Inc. Publishing as Addison Wesley

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller testsolution. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $18.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80364 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$18.99
  • (0)
  Add to cart