Checklist for the Final

ECO 206-02 Spring 2017

1. Ch 4

(a) What are the implications for assuming normality of the errors?
(b) What are the CLM assumptions?
(c) What happens to the properties of the estimators if we take away any of these assumptions?
(d) If the dependent variable is wage, does u follow normal distribution? What about logwage?
(e) How to test a one/two-sided null hypothesis about a single parameter?
(f) What is a p-value? Compute p-value from a given t-stat.
(g) What is a test of signicance?
(h) Do you know when and why to use z-distribution and t-distribtion?
(i) How to test any hypothesis about the parameter taking a particular value?
(j) How to test signicance of a parameter in a log-log model?
(k) Construct condence intervals
(l) How to conduct a test about a linear relationship between multiple parameters? What are the
two alternatives to do it? (One using STATA and vce command, the other running separate
regressions)
(m) How to test multiple linear restrictions?
(n) What is the dierence between multiple single parameter signicance test and a joint signicance
test?
(o) How about joint signicance?
(p) What is the relationship between t-stat and F-stat?
(q) Test general multiple restrictions?
(r) All chapter-end questions

2. Ch 7

(a) How to test if there is just a level dierence across two groups?
(b) How to nd if the marginal eect of one variable is linear?
(c) How do you interpret coe cients with a binary dependent variable? What if its in log form?
(d) How do you treat two dierent categorical variables? Interaction terms vs separate regressions.
(e) How do you test if the model itself is dierent for two dierent groups.
(f) What is the expected dierence in the dependent variable for dierent categories?
(g) What is LPM? What are the problems with it?
(h) How do you solve the problems in LPM?
(i) Interpret coe cients in LPM.
(j) Interpret coe cients of the dependent variable is discrete in nature.
(k) All chapter-end questions.

3. Ch 8

(a) Show that LPM has heteroskedasticity.

(b) What is White SE formula?
(c) What goes wrong with violating homoskedasticity?
(d) Text: Q1 (ii, iii), 2, 4, 5