04 Jun Department of Economics Introduction to Econometrics
Question
Economics 103
Department of Economics Introduction to Econometrics
UCLA Fall, 2014
Mid-Term Examination
Instructions:
This is a 1 hour and 15 minutes open-book in-class exam. You are allowed to use your text book, your notebook and a calculator.
No connection to the internet via WiFi or any other method is allowed. It is not permitted to use any kind of phone. The only devices that are allowed are iPad (or equivalent) and a laptop, and ONLY for the purpose of accessing you e-book version of the course textbook. Please answer all the questions. Please choose the best answer among all available answers. Only one answer is the best answer! Please mark one, and only one, answer on the scantron sheet. Any question with more than one answer marked will not be counted.
When you are ?nished with the exam, please turn in both the exam questions and the scantron sheet.
Cheating of any form will result in a score of 0 (zero) for the exam, in addition to the normal university disciplinary action.
Please sign below that you have read, understood, and ful?lled all of the above instructions and conditions.
Please ?ll in the following personal information:
First Name
Last Name
UCLA ID #
Signature
Exam Version B
Please start solving the examinations only when you are instructed to do so.
Please stop immediately when instructed to do so.
Part I (each question is worth 4 points):
Consider the following regression model:
yi = 1 + 2xi + ei;
for i = 1; :::;N. Let eijxi
????
0; 2i
. That is, conditional on xi, ei has a distribution with a mean
of 0 and a variance of 2i
. Let
s2
x =
1
N
XN
i=1
(xi ???? x)2 ; where x =
1
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