POLS 626

Exam 2 Review Sheet

Last updated: 4/15/05

 

This review is intended to give you a general idea of what may appear on the exam.  The exam will cover material from the assigned readings and material that was presented in the lecture. 

 

Please bring a calculator.

 

Ch 6

Standardized coefficients

Logarithmic functional forms

Adjusted R-squared

 

Ch 7 Dummy Variables

Table 7.1

A single dummy independent variable

            Equation 7.1

            Figure 7.1

            Example 7.1

Using dummy variables for multiple categories

Allowing for different slopes

            Equation 7.16

            Equation 7.17

            Figure 7.2

 

Ch 8 Heteroskedasiticity

Testing for heteroskedasticity

            Equation 8.14

            The White Test

            Equation 8.19

                        Equation 8.20

Weighted Least Squares Estimation

Pp270-274

FGLS   pp276-280

           

Ch 9

RESET as a General Test for Functional Form misspecification

            Pp292-293

Using Lagged Dependent Variables as Proxy Variables

            Pp300-302

            Example 9.4

Missing Data

            Pp309-310

Outliers and influential observations

            SPSS: Standardized residual

 

Autocorrelation

Ch 10 Serial correlation pp333-334

Ch 11 The Durbin-Watson Test pp397-399

Ch 12 Differencing and Serial Correlation pp409-410

 

Ch 17 Limited dependent variable models

Pp553-558

            Figure 17.1

Interpreting the logit model pp559-565

Pseudo R squared

Calculating predicted probabilities

 

II. The following instructions will be provided

 

FGLS

1. Run the regression of y on  and obtain the residuals .

2. Create

3. Run the regression of on   and obtain the predicted (fitted) values,

4. Caluculate h by exponentiating the fitted values,

5. Estimate the equation   by WLS, using weights 1/h

 

Durbin-Watson Test

            The null hypothesis: No autocorrelcation

d < dL                   Reject the null hypothesis

            d > dU                   Fail to reject the null hypothesis

dL  <d < dU        Inconclusive

 

III. The following formulae will be provided. The tables for t, F, and Durbin-Watson will also be provided

 

T test:

                           (4.5)

 

A single dummy independent variable

                      (7.1)

 

 

Interactions involving dummy variables

                      (7.16)

 

Test for Hetroskedasticity

                                (8.20)

 

Testing Multiple Linear Restrictions

 

           

 

RESET

            Restricted:       

            Unrestricted:    

           

 

Logit

  

 

Logarithmic function