EcontTutor | Economics Tutors for students from top universities

EconTutors
Specialists in Econometrics

Econometrics is one of the most challenging courses at any degree program, which is why we recruit tutors who have specialized in econometrics from top universities like LSE, UCL and KCL. Our tutors understand that econometrics brings together advanced statistics, economics and some knowledge of calculus – which is why we are better prepared to develop a foundation for learning econometrics like no other tutoring group.

Best econometrics tutors from LSE, Kings, UCL.

 

We believe that the population relation is described by the following equation:

 

y​​ =​​ β0​​ +​​ β1x​​ +​​ E(1)

 

Imagine​​ that​​ we​​ believe​​ that​​ Assumption​​ 4​​ (the​​ unconditional​​ mean​​ zero​​ assumption)​​ is​​ not​​ satisfied. Show that one can find an equation that also describes the relation in the population between​​ y​​ and​​ x​​ and that does satisfy Assumption​​ 4.

Econometrics tutors London, London econometrics tutors, online econometrics tutors London

 

We have the following population model:

y​​ =​​ β0​​ +​​ β1x​​ +​​ E

We​​ have​​ to decide between two alternative estimators. The density functions of the two estima- tors are displayed​​ below.​​ Discuss​​ briefly​​ which estimator you​​ prefer.

 

We​​ have​​ studied​​ the​​ effect​​ of​​ the​​ NTV​​ TV​​ station​​ coverage​​ on​​ the​​ percentage​​ of​​ votes​​ that​​ the​​ party​​ supporting​​ Vladimir​​ Putin​​ received​​ in​​ the​​ 1999​​ Duma​​ elections.​​ We​​ obtained​​ the STATA output​​ below:

 

Compute​​ the​​ slope​​ coefficient​​ that​​ we​​ would​​ have​​ obtained​​ if​​ we​​ had​​ run​​ a​​ simple​​ regression​​ of

votesPutin​​ on​​ NTV.

 

Question​​ 7:​​ We​​ believe that,​​ in​​ the​​ population,​​ the​​ relation​​ between y​​ and​​ x​​ is​​ negative.​​ Unfortunately,​​ our​​ sample​​ was​​ not​​ obtained​​ randomly,​​ but​​ instead​​ it​​ contains​​ only​​ observations​​ with​​ a​​ value​​ of​​ y​​ below​​ a​​ certain​​ threshold.​​ Explain​​ graphically​​ whether​​ the​​ error​​ term​​ in​​ our model​​ is​​ positively​​ or​​ negatively​​ correlated​​ with​​ our​​ independent​​ variable x.

 

 

  • X​​ and​​ Y​​ are independent random variables.​​ E(X) = 2, V(X) = 2, E(Y ) = 3 and V(Y ) = 5.

Find

(a) [15%] E(2X - Y )

(b) [20%] V(2X + 4)

(c) [25%] V(2X - 4Y )

(d)​​ [40%] E(2X2 - 4Y )

 

We wanted to understand the relation between journal demand and the lightness of the journal covers. In order to do that, we ran the following regression:

lsubscriptions^=1.7-.18lightness

​​  (0.44)(.10)

 

where we have standard errors in parentheses. Our sample size is 180. Test the null hypothesis that​​ the​​ effect​​ is​​ zero​​ against the​​ alternative hypothesis​​ that​​ the​​ effect​​ is​​ negative​​ at​​ the​​ 5%​​ level.

 

Question 9:​​ We wanted to estimate the returns to education separately for every state in the US. Our population model is:

lwage=β0+β1education+ϵ

For every state we used a sample size equal to 1/100,000 of the state population. The table below displays the estimated coefficients for ten states: