ECON 710 Midterm: ECON 710 UW Madison Midterm 2001
Document Summary
March 6, 2001: the model is yi = x0 i + ei, E e2 i | xi = 2 i . , and let (cid:152) be the (infeasible) gls estimator of . i are known. An econometrician is worried about the impact of some unusually large values of the regressors. The model is thus estimated on the subsample for which |xi| c, for some (cid:222)xed c. let (cid:152) denote the ols estimator on this subsample. 1: let (y1, , yn) be a real-valued random sample from distribution f with mean (cid:181) = Let (cid:136)(cid:181) = y be the sample mean and let tn = (cid:136)(cid:181) (cid:181). Let be the bias of (cid:136)(cid:181) for (cid:181). Let (cid:136) = (cid:136)(cid:181)2, set tn = (cid:136) = (cid:136)(cid:181)2 (cid:181)2. Find n = e (tn) , n = 0 the bias of (cid:136) for . (c) bonus question: find n =r tndfn, the bootstrap estimate of bias.
