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book Introductory Econometrics 4th Edition by Jeffrey Wooldridge cover

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609
book Introductory Econometrics 4th Edition by Jeffrey Wooldridge cover

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609
Exercise 1
Suppose that a military dictator in an unnamed country holds a plebiscite (a yes/no vote of confidence) and claims that he was supported by 65% of the voters. A human rights group suspects foul play and hires you to test the validity of the dictator's claim. You have a budget that allows you to randomly sample 200 voters from the country.
(i) Let X be the number of yes votes obtained from a random sample of 200 out of the entire voting population. What is the expected value of X if, in fact, 65% of all voters supported the dictator
(ii) What is the standard deviation of X, again assuming that the true fraction voting yes in the plebiscite is.65
(iii) Now, you collect your sample of 200, and you find that 115 people actually voted yes. Use the CLT to approximate the probability that you would find 115 or fewer yes votes from a random sample of 200 if, in fact, 65% of the entire population voted yes.
(iv) How would you explain the relevance of the number in part (iii) to someone who does not have training in statistics
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Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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