Introduction to econometrics II eco 356 faculty of social sciences course guide course Developers: Dr. Adesina-Uthman

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Introduction to Econometrics ECO 356 Course Guide and Course Material

Observation X  Y
INTRODUCTION TO ECONOMETRICS II ECO 306 NOUN

NOUN
71 accustomed to the game, although, obviously, there will be variations caused by the luck factor. Suppose that the learning curve determines their scores
500 100
i
i
i
Y
X




where,Y is the score, X is the number of times that they have played before, and is a disturbance term. The following table gives the results of the first 20 games of anew player. X
automatically goes from 0 to 19; was set equal to 400 times the numbers generated by a normally distributed random variable with 0 mean and unit variance, and X and

determined Yaccording to the learning curve.
Observation
X


Y
1 0
-236 264 2
1
-96 504 3
2
-332 368 4
3 12 812 5
4
-152 748 6
5
-876 124 7
6 412 1,512 8
7 96 1,296 9
8 1,012 2,312 10 9
-52 1,348 11 10 636 2,136 12 11
-368 1,232 13 12
-284 1,416 14 13
-100 1,700 15 14 676 2,576 16 15 60 2,060

INTRODUCTION TO ECONOMETRICS II

ECO 306

NOUN
72 17 16 8
2,108 18 17
-44 2,156 19 18
-364 1,936 20 19 568 2,968 Regressing Y on X, one obtains the equation (standard errors in parentheses
̂ SEE (190) (17.1) Why is the constant in this equation not equal to 500 and the coefficient of X not equal to 100? What is the meaning of the standard errors
2.) The experiment is repeated with nine other new players (the disturbance term being generated by 400 times a different set of 20 random numbers in each case, and the regression results for all ten players are shown in the following table. Why do the constant, the coefficient of X, and the standard errors vary from sample to sample

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