ECO 4421 Midterm: ECO 4421 FIU Test
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Instructions: there are two questions in all, each having several parts. You will get more credit for precise answers and penalized for vague answers. Answers that do not directly address the question being asked but rather only provide some tangential information will not get any credit. As a general rule of thumb providing more details in an answer is better. Prove that that is, the sum of the product of residuals ie and the i. 0 ie y iy is always zero. estimated (v) Y that is, that the means of the actual y values and the estimated. X u t t in which ty is total expenditure on travel and tx is total income for the tth state. Both variables are measured in billions of dollars. The following is a partial computer output for the data: Test individually whether the coefficients for the constant term and income are significantly different from zero at the 5 percent level.
