ECONS205-21A

Details on Final Exam

2.30pm, Monday 21 June

(L.G.01 – L.G.04)

100 Marks in 180 minutes

• ALL material covered this semester in lectures and labs is examinable

• Formula sheet will not be given, in lieu, you can bring ONE A4 sheet of notes

• 40 marks from Multiple Choice (40 questions) that cover all topics in the course

• 5 long answer questions of 30 marks each, where you choose to do two of them (if you answer more than 2 of the 5, markers will just mark the first two they come to, so it is a poor use of your time to do more than 2 of the 5)

• 1 will be of the True/False/Uncertain and explain type (6 statements @ 5 marks)

• 1 will be based on regression and will include interpreting regression output

• 2 will be based on linear programming, and will include Solver output

• 1 will be based on “business/policy/research design scenarios” and involves writing

Examples of True/False/Uncertain type questions

For each of the following statements and explain whether the statement is true, false or uncertain. Be sure to fully explain your answers, because it is the explanation rather than the choice you make that matters most for the mark. [5 marks each]

(a) If we have modeled the trend adequately in time series regressions, we can just look at the value of R2 as a reliable guide to whether the model is a good model.

(b) A statistically significant relationship between a variable on the right-hand side of a regression (that is, an X variable) and a variable of the left-hand side (that is, a Y variable) proves that X causes Y.

(c) In a multiple regression model, testing the hypothesis that R2 = 0 is equivalent to testing that βj = 0 for the jth variable.

(d) If life expectancy and the price level are both trending upwards, a regression of life expectancy on the price level can be used to justify the claim that ‘inflation helps people to live longer’

(e) Let St denotes annual savings and It denotes annual income. To estimate savings function over time, we can simply run the following model: St = α + β1 It + β2 It-1 + β3 Δ It + εt where Δ It = It - It-1

Example of Scenario Question

Critique each of the following proposed research plans. Your critique should explain any problems with the proposed research and describe how the research plan might be improved. Include a discussion of any additional data that need to be collected and the appropriate statistical techniques for analysing those data.

a. Twelve months ago, the Ministry of Social Development of Zealandia implemented a training program for the unemployed. Ms. Speedy Analyst is called in afterwards to evaluate the impact of the program on earning of program participants. She has been given a data set containing the earnings of a random sample of workers, in which some receive training and some did not. To measure the causal effect of the program, she told her boss that they can simply compare the mean income of workers who participate in the training and those who do not. 

Preparing for the Final Exam

• Review Session during study week

• Submit your preferred dates via Google Online Poll by today (June 1st) the latest

• The time and venue will be announced on Moodle once the Poll is closed

• Consultations:

• Office Hours: I will hold extra office hours prior to the final test. The times will be announced on Moodle

• Drop-in Sessions: Tutors will also be holding drop-in sessions prior to the final test. Exact times, locations and tutor name will be provided on Moodle

• Marks for internal assessments will be available on Moodle in study week. WAIT for my email before checking