The GDP of U.S. from 1950 to 2010 belongs to what kind of data? A.Pooled Cross S

ID: 2442288 • Letter: T

Question

The GDP of U.S. from 1950 to 2010 belongs to what kind of data?

A.Pooled Cross Sections

B.Cross-Sectional Data

C.Time Series Data

D.Panel data

Theory gives you the following relationship between variables X and Y,

y=b1+b2x+u

You collect a sample of data on n=4 sample members. The data are {x1, y1}={2, 8}, {x2, y2}={-1, 10}, {x3, y3}={3, 6}, {x4, y4}={4, 0}.

What are your estimation of b and b1 ?

A.9.43 and -1.71

B.7.64 and -1.11

C.8.10 and -2.25

D.6.25 and -3.76

Theory gives you the following relationship between variables X and Y,

y=b1+b2x+u

You collect a sample of data on n=4 sample members. The data are {x1, y1}={2, 8}, {x2, y2}={-1, 10}, {x3, y3}={3, 6}, {x4, y4}={4, 0}.

What is your prediction for y when x=10?

A.-5.10

B.-5.62

C.-7.71

D.-9.91

Ans 1)

If it is all about GDP for more than one country for year from 1950 to 2010 then it is called Pooled data but now in this case it is time series data

Ans 2)

Mean of Y=(8+10+6+0)/4=6

Mean of X=(2-1+3+4)/4=2

Sum(Y-Y_)*(X-X_)=(0-12+0-12)=-24

Sum(X-X_)^2=(0+9+1+4)=13

b2=Sum(Y-Y_)*(X-X_)/Sum(X-X_)^2=-24/13=-1.71

b1 is Mean of Y-b2*Mean of X=6-(-1.71)2=9.42

Hence Option 1 is correct

Ans 3)

When X=10 then Y=

=9.42+(-1.71)(10)=-7.71(Approximately)

Option C is correct

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