lab2 econometrics
Self-Lab 2 - Use Your Hand
University of Gothenburg
Department of Economics
Applied Econometrics (MSc.), Fall 2013
Alpaslan Akay
University of Gothenburg
This is your second homework. It is a lab that you are going to do it alone again. In the first lab you have learned how to operate Stata and calculate descriptive statistics. You also read a paper with an interesting research question. Self-Lab 2 covers some topics of Lecture 2 and 3. In this lab you are going to learn how to calculate OLS estimator with your own hand. Later, you are going to answer some conceptual questions. These concepts are used in the practice very often and you should not make mistake while using them. Understand clearly what they are by reading from internet or any book. Please do not copy and paste something from internet. Submit your answers to my e-mail before 13th of December, 2013 (latest 23:59).
A. It is good to learn how things work…
Imagine that you have the data given below. GPA is grade point average and ACT is the ACT Test score for 8 collage students.
Student
GPA
ACT
1
2.8
21
2
3.4
24
3
3.0
26
4
3.5
27
5
3.6
29
6
3.0
25
7
2.7
25
8
3.7
30
Calculate the followings with your own hand
1) the coefficients of the regression below. You can use any approach (algebraic or matrixes). I would like to see each step clearly described.
2) the error variance
3) the standard errors of the parameter
4) the t-test statistics
5) the %95 confidence interval of OLS estimates of
6) the p-value of rejecting the null that
7) the R-squared.
8) the predicted GPA and residuals
Now calculate all using in-build comment of Stata. Be sure that your results and the results given by Stata are the same. Report the your and Stata results. .
9) Use stata and draw the scatter plot between GPA and ACT. What do you think?
10) Use stata and predict GPA and be sure that the
University of Gothenburg
Department of Economics
Applied Econometrics (MSc.), Fall 2013
Alpaslan Akay
University of Gothenburg
This is your second homework. It is a lab that you are going to do it alone again. In the first lab you have learned how to operate Stata and calculate descriptive statistics. You also read a paper with an interesting research question. Self-Lab 2 covers some topics of Lecture 2 and 3. In this lab you are going to learn how to calculate OLS estimator with your own hand. Later, you are going to answer some conceptual questions. These concepts are used in the practice very often and you should not make mistake while using them. Understand clearly what they are by reading from internet or any book. Please do not copy and paste something from internet. Submit your answers to my e-mail before 13th of December, 2013 (latest 23:59).
A. It is good to learn how things work…
Imagine that you have the data given below. GPA is grade point average and ACT is the ACT Test score for 8 collage students.
Student
GPA
ACT
1
2.8
21
2
3.4
24
3
3.0
26
4
3.5
27
5
3.6
29
6
3.0
25
7
2.7
25
8
3.7
30
Calculate the followings with your own hand
1) the coefficients of the regression below. You can use any approach (algebraic or matrixes). I would like to see each step clearly described.
2) the error variance
3) the standard errors of the parameter
4) the t-test statistics
5) the %95 confidence interval of OLS estimates of
6) the p-value of rejecting the null that
7) the R-squared.
8) the predicted GPA and residuals
Now calculate all using in-build comment of Stata. Be sure that your results and the results given by Stata are the same. Report the your and Stata results. .
9) Use stata and draw the scatter plot between GPA and ACT. What do you think?
10) Use stata and predict GPA and be sure that the