Data Inspection and Statistical Inference
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ECON213 Name:
Midterm 1
Absolutely no late midterms will be accepted. You may hand it in early if you like.
Midterms are to be completed independently (no corroborating with other students), and to be emailed as a PDF.
Ensure all questions are answered clearly. You must include the following statement at the beginning of
your midterm submission to acknowledge that your clearly understand the rules and consequences of
the take home midterm:
““I, [name], understand that this midterm is to be completed independently. I have asked noquestions to any other human,
with the exception of the TA or the professor, regarding thismidterm.
I understand that any suspicion of plagiarism or academic dishonesty will result in azero grade for this midterm.
This statement and my name act as an understanding and compliance of the terms.
Signed, [name].”
”You will be using data on single family homes sold in Lucas County, Ohio, between 1993-1998 as reported from the
county auditor (see house.dta on Latte). The file is in Stata data format, so use,
> library(foreign) > read.dta command, or > library(haven) > read dta command.
N.B. property assessment values are used to determine the amount of property tax the homeowner pays.
The important thing about the
assessed value is that it is a completely deterministic process: the government takes publicly known features about
the house (ex. square footage, lot size, number of windows, zip code, etc.)–all of which are in the dataset–plugs
these into a formula, and the output is the assessed value (which is what property taxes are based on). There is
no error term, things like “outdated kitchen” have no effect on the assessed value, but certainly do on the market price.
One degree of latitude is approximately 69 miles; one degree of longitude (at about 40 degrees latitude) is ap-
proximately 53 miles.