ECO220Y1 Midterm: ECO220Y1Y UTSG Term Test 220 4 MAR18
ECO220Y1Y, Term Test #4, Prof. Murdock
March 2, 2018, 9:10 – 11:00 am
U of T E-MAIL: ___________________________________@MAIL.UTORONTO.CA
SURNAME
(LAST NAME):
GIVEN NAME
(FIRST NAME):
UTORID:
(e.g. LIHAO118)
Instructions:
You have 110 minutes. Keep these test papers and the Supplement closed and face up on your desk until the
start of the test is announced. You must stay for a minimum of 60 minutes.
You may use a non-programmable calculator.
There are 6 questions (some with multiple parts) with varying point values worth a total of 100 points.
This test includes these 8 pages plus the Supplement. The Supplement contains formula sheets, the Standard
Normal table, the Student t table, and necessary materials for some test questions.
o The Supplement will not be graded. We will only collect these test papers, not the Supplement.
Write your answers clearly, completely and concisely in the designated space provided immediately after
each question. An answer guide ends each question to let you know what is expected. For example, a
quantitative analysis (which shows your work), a fully-labelled graph, and/or sentences.
o Anything requested by the question and/or the answer guide is required.
o Similarly, limit yourself to the answer guide. For example, if the answer guide does not request
sentences, provide only what is requested (e.g. quantitative analysis). Leave yourself time to
complete all questions rather than overdoing some questions and running out of time.
o For questions with multiple parts (e.g. (a) – (d)), attempt each part.
Unless otherwise specified, you choose the significance level. Absent any special considerations, you may
choose = 0.05.
Your entire answer must fit in the designated space provided immediately after each question. No extra
space/pages are possible. You cannot use blank space for other questions nor can you write answers on the
Supplement. Write in PENCIL and use an ERASER as needed. This way you can make sure to fit your final
answer (including work and reasoning) in the appropriate space. Most questions give more blank space than
is needed to answer. Follow the answer guides and avoid excessively long answers.
(1) See Supplement for Question (1): Differences in Professors’ Salaries by Sex at Waterloo.
(a) [6 pts] What is the full interpretation of 12.748? Answer with 1 precise sentence that would be clear to someone
who has not read the supplement.
(b) [4 pts] If salary were regressed on a dummy variable for females (i.e. Female equals 1 for a female professor and
equals 0 for a male professor), what would the regression results be? Answer with the OLS results in equation form.
(c) [4 pts] What is the interpretation of 0.084? Answer with 1 precise sentence that would make sense to someone
who has already read the sentence you wrote for Part (a).
(2) See Supplement for Question (2): Gender Gaps among Lawyers.
(a) [9 pts] Consider Table 1 and the “Law school ranking” row. Given that the test statistic is -1.38 and the degrees of
freedom are 826, does the P-value column refer to one- or two-tailed tests? Explain and reference the appropriate
table. Answer with formal hypotheses, 1 – 2 sentences & do not recompute the given values of -1.38 and 826.
(b) [5 pts] Use the “Marriage” row of results in Table 1. Do marriage rates differ by sex in a statistically significant
way? If so, at which significance levels? Is the difference economically significant? Answer with 2 sentences.
(c) [5 pts] Use the “Tenure (years)” results in Table 1. Do years of tenure differ by sex in a statistically significant way?
If so, at which significance levels? Is the difference economically significant? Answer with 2 sentences.
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ECO220Y1 Full Course Notes
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Document Summary
Keep these test papers and the supplement closed and face up on your desk until the start of the test is announced. You must stay for a minimum of 60 minutes. There are 6 questions (some with multiple parts) with varying point values worth a total of 100 points. This test includes these 8 pages plus the supplement. Normal table, the student t table, and necessary materials for some test questions: the supplement will not be graded. We will only collect these test papers, not the supplement. Write your answers clearly, completely and concisely in the designated space provided immediately after each question. An answer guide ends each question to let you know what is expected. For example, a quantitative analysis (which shows your work), a fully-labelled graph, and/or sentences: anything requested by the question and/or the answer guide is required, similarly, limit yourself to the answer guide.
