 
 
 
Data Analysis and Economic Forecasting
 
These questions are from the test bank. Some questions have multiple parts.  
Theoretical Questions  
1. What is an unbiased estimator? How do econometricians measure an estimator's bias? 2. What are timeseries, crosssectional, and panel data? Does the type of data matter how we analyze the data? 3. What is the difference between standard error and standard deviation? 4. Why do econometricians use the tstatistic, rather than the zvalues from a normal distribution? 5. Which equations below are linear in parameters? 6. Using the GaussMarkov Theorem and given various assumptions are true, what is a BLUE estimator? Is the BLUE assumption important for forecasting? 7. Prove that Least Squares is an unbiased estimator, where . 8. You have a linear system of equations. What do you do in each of the following cases? If n > k, how do you proceed? 9. What is R^{2}? What are its shortcomings? 10. You have data that is normally distributed. What kind of distribution do the data have if you take linear combinations of it? 11. The least squares estimator is b = (X^{T}X)^{1}X^{T}Y. What would prevent you from taking the inverse? What is multicollinearity?
 
Empirical Questions  
12. Parts of your Excel output are missing, please calculate the
missing values:
13. Parts of your Excel output are missing, please calculate the
missing values:
14. A computer virus infected your Excel program. Thus many
calculations are missing from the ANOVA table. Please manually
calculate the remaining values.
15. Using the same ANOVA from Question #14, please calculate the following:
16. How could you use Excel to solve this system of
equations?

