Intro (L1)

Question 1

Experimental data

Answer 1

Control &treatment groups
Randomised people

Question 2

Quasi-experimental group

Answer 2

Subjects are assigned to control & treatment groups by criteria eg tax rate

Question 3

Cross-sectional data

Answer 3

Collected over a period of time , in a year collecting samples from different countries

Question 4

Time-series data

Answer 4

Collecting one piece of data over a period of time

Question 5

Panel data

Answer 5

Many samples over a period of time looking at students from y8 to their 20s eg

Question 6

Flow or stock

Answer 6

Flow: measures transaction in a time period
Stock: measures the amount of an asset in one point in time

Question 7

Basic model

Answer 7

C= ß0+ ß1DI + e
Denote C,DI and e according to the type of data
Time series: Ct
Cross sectional: Ci
Panel:Cit

Question 8

How to show an estimate of coefficients in the basic model

Answer 8

Č (hat opposite way)

Question 9

E(aX+b)

Answer 9

aE(X)+b

Question 10

Variance

Answer 10

E(X^2)-u^2

Question 11

Var(aX+b)

Answer 11

a^2Var(X)

Question 12

Cov(X,Y)

Answer 12

E[(X-E(X)(Y-E(Y)]

Question 13

Correlation coefficient

Answer 13

Cov(X,Y)/ ROOT VAR(X)VAR(Y)

Question 14

Z=aX+bY
Var(Z)

Answer 14

Var(aX+bY)
a^2var(x)+b^2var(y)+2abcov(x,y)
If unrelated, cov is 0