Econometrics: weeks 9-12 (April 8th to 28th)

In weeks 6-8 we:

• Finished working with the CEO compensation and Wooldridge's "Beauty" datasets
• Explained Lesson 4.1 Discrete and semi-continuous regressors. Polynomial terms
• Started Lesson 4.2 Collinearity
• Solved the Exercise sheet #2

The goals for weeks 9-12 are:

• Finishing Lesson 4.2 Collinearity
• Doing a partial exam (final date: Wednesday April 10th) including all the course content up to and including discrete regressors
• Explaining Lessons 5.1 and 5.2, Heteroscedastic and non-normal dat and Influential observations and outliers, as well as the corresponding practical cases

Warning

I will not be able to attend to next April 11th class due to a professional meeting. We will compensate for the time lost with an extra class to answer doubts that will take place close to the June exam.


Activities:

• Download the materials for lessons 5.1 and 5.2, as well as the corresponding practical cases
• Fit a log-linear regression to  Wooldridge's "Beauty" dataset. Compare the results with those obtained with the linear model. Which model complies better with OLS hypotheses

Graded personal homework

Send an e-mail to this address (last day for delivery: Friday April 26th). This message should:

• Summarize the results of previous activities
• Describe any doubts about the topics explained in class 
• Write a 400 words approx. summary of your main conclusions after fitting a log-linear regression to  Wooldridge's "Beauty" dataset. Please, try to follow the guidelines in Givens, G.H. and J.A. Hoeting (2002). Comunicating Statistical Results.

This e-mail will be assessed as part of the "active participation" item (10% of final grade). You can facilitate processing these e-mails by complying with the deadline and delivery procedure (please use this email address). I would also help if all the text is included in the body of the message body, avoiding attachments whenever possible.