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Explain whether it would have been possible to perform one-tailed tests instead of two-tailed tests in Exercise 3.11. If you think that one-tailed tests are justified, perform them and state whether the use of a one-tailed test makes any difference.
Exercise 3.11
Perform a t test on the slope coefficient and the intercept of the educational attainment function fitted using your EAEF data set, and state your conclusions.
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.What ..
A single unit of a good is to be sold via an auction. There are two bidders, A and B. They are assumed to be risk-neutral. The seller knows that there are five possible values of willingness to pay, $100, $200, $300, $400 and $500.
the price elasticity of demand for heroin is .27. suppose that half of the existing heroin users support their habits
Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 - b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values.
In an equation for annual data, suppose that: unempt = 2.7 - .68 inft - .25 inft-1 + .33 inft-2 + ut, where unempt is an unemployment rate at time t and inft is the inflation rate. What are the impact and long-run propensities
The tensile strength of spot welds produced by a robot welder is normally distributed, with a mean of 10,000 psi and a standard deviation of 800 psi. For a simple random sample of n=4 welds,
If you receive a request for proposal (RFP) on a project for four units, what is your break-even price Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your break-even price for th..
Assume that the reserve requirement is 5%. All other things equal, will the money supply expand more if the Federal Reserve busy $2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar
Suppose that two firms compete in quantities (Cournot) in a market in which demand is described by P = 260 - 2Q. Each firm incurs no fixed costs but has a constant marginal cost of 20. Suppose that after the cartel is established, one firm decides ..
What has happened to the volatility of interest rates since 1982? Does your answer change if your measure of the interest rate is the ten-year government bond rate?
Before Missy decides the discount policy, she needs a better understanding of the dollar-amount distribution of the mail orders she receives. Missy had an assistant randomly select 50 recent orders and record the value, to the nearest dollar, of e..
It is common for supermarkets to carry both generic (store-label) and brand-name (producer-label) varieties of sugar and other products. Many consumers view these products as perfect substitutes, meaning that consumers are always willing to substi..
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