An empirical study is done on estimating the value of the houses in a city based on the following underlying factors: Price= Value of the house (in *1000 Dollars) otsize=Size of the property lot (in acres) Bedroom3 Unit number of bedrooms of a house Bathroom= Unit number of bathrooms in a house Driveway= A binary variable specifying if "Driveway=1" the house has a driveway, and if "Driveway=0" otherwise Garage= A binary variable specifying if "Garage=1" the house has a single-door garage, and if "Garage=0" otherwise A statistician has reviewed a database of 1000 records of houses sold in the city, and has come up with the following regression equation, to try to find a elationship among variables: Price(i)=B0 + B1[Lotsize(i)] + B2[Bedroom(i)] + B3[Bathroom(i)] + B4[Driveway(i)] + B5[Garage(i)] +u(i) A. By reviewing the result of GRETL outcomes in the attachment, perform a hypothesis test to verify the validity of all slope coefficients, collectively. Show the teps of the deployed hypothesis method. 3. Test if both Driveway & Garage need to be jointly included in the model as important variables in estimating the price of the houses in the city. Make sure ye vrite down all necessary equations & steps required. Show your calculations.

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2. (a) What does the index of intra-industry trade measure and does it tell us anything about the total amount of trade? (b) There are two ways of measuring the degree of intra-industry trade within an industry: min (imports, exports) Index of intraindustry trade = 1 2 (imports + exports) -(lexpe (lexports - imports| exports + imports Grubel Lloyd index = 1 - Using the first formula, calculate the index of intra-industry trade for the U.S in 2014 for the products on Table 1. Using your answer in (b) above, what does the index of intra- industry trade of men's shorts, large passenger aircraft, telephones and golf carts tell us? (d) What are the two necessary conditions to obtain a high index of intra-industry trade?

15. (15 points) Suppose that the values of y are generated by the following equation: ŷ=a+Bx+e Where a and ẞ are unknown parameters and e is the random error. The table below gives the observed values of y and x for a sample of size 4. obs y x y น 2 1 24 24 10 10 1 6 9 = +Bxte 28-3+8+(0.5) 25 25 S 3 4 5 28 -8 7 -1 Consider the regression estimates of the unknown parameters a and ẞ: a 3 β 5 Fill in the missing values in the table. Calculate the sum of squared residuals and write it below. SSR =

12 ( answer only )

2. (TRUE/FALSE) To economists, the amount of a resource stock in situ is an important measure of scarcity of the resource

5. (b) Are the following statements true or false? Justify your answer (simply saying true or false will carry no credit). i) "A labor market dominated by a single buyer achieves Pareto efficiency if the buyer operates as a perfectly discriminating monopolist". ii) "A cake is divided between two individuals; Pareto optimality requires that they receive equal shares".

3. (10 points) At the recent shareholders' meeting in June 2023, the CEO of a small bank proposed a plan to offer each of its employees 250 incentive options for Class A common stock. The key provisions of the plan are that employees must exercise the options between January 2027 and December 2028, and if an employee terminates their employment with the bank (or is terminated) before January 2027, the options are no longer exercisable. As CEO, how would you defend the stock option plan to the shareholders? Please give an explanation. (Note: A stock option is a form of employee compensation where the firm gives the employee an option to purchase equity shares in the company at an agreed upon price, which is usually the market price of the stock on the day the option is granted. These shares would be bought from the company and not on the open market. After the date when the company states that the option can be exercised, which is some time in the future, any time the market value of…

4. (0,.7 or 10) Provide an example of product differentiation using any industry you want (e.g., fast food, shoes, clothing, etc.)

22.) What percentage of France's electricity is generated by nuclear energy? a. 25 percent b. 50 percent c. 75 percent