Econ 140 Midterm UC Berkeley Exam Questions and Answers (Solved Papers) The relation between X and Y is linear in parameters - Correct Answers ✅SLR Assumption 1 The variable X is non random across samples (X treated as a constant across samples) - Correct Answers ✅SLR Assumption 2 Covariance between X and u is zero - Correct Answers ✅SLR Assumption 3 u has an expected value of zero (E[u] = 0) - Correct Answers ✅SLR Assumption 4
Homoscedasticity: the error term (u) has a constant variance
for all observations - Correct Answers ✅SLR Assumption 5
No autocorrelation: error terms are statistically independent -
Correct Answers ✅SLR Assumption 6 The error terms are normally distributed - Correct Answers ✅SLR Assumption 7 Introduce mathematical model - Correct Answers ✅Economic studies step 1 1 / 2
Econ 140 Midterm UC Berkeley Exam Questions and Answers (Solved Papers) Change into econometric model - Correct Answers ✅Economic studies step 2 Collect data - Correct Answers ✅Economic studies step 3 Estimate parameters (B0 and B1) - Correct Answers ✅Economic studies step 4 Statistical inference and hypothesis testing - Correct Answers ✅Economic studies step 5 Expected value of error term is zero (E[u] = 0) - Correct Answers ✅Error term property 1 Error term is unique to each observation - Correct Answers ✅Error term property 2 Error term is unpredictable (otherwise our model is incorrect)
- Correct Answers ✅Error term property 3
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Unbiasedness - Correct Answers ✅Desirable estimator property 1 Consistency - Correct Answers ✅Desirable estimator property 2