SUMMER TERM 2020 ONLINE 24-HOUR EXAMINATION ECON0019: QUANTITATIVE ECONOMICS AND ECONOMETRICS All work must be submitted anonymously. Please ensure that you add your candidate number and the module code to the template answer sheet provided. Note that the candidate number is a combination of four letters plus a number, e.g. ABCD9. You can find your candidate number in your PORTICO account, under “My Studies” then the “Examinations” container. Please, note that the candidate number is NOT the same as your student number (8 digits), which is printed on your UCL ID card. Submitting with your student number will delay marking and when your results might be available. Page limit: 5 Your answer should not exceed 5 A4 pages. This page limit is generous to accommodate students with large handwriting. We expect most of the submissions to be significantly shorter than the set page limit. If you exceed the maximum number of pages, the mark will be reduced by 10 percentage points, but the penalised mark will not be reduced below the pass mark: marks already at or below the pass mark will not be reduced. Answer ALL TWO questions from Part A and answer ONE question from Part B. Questions in Part A carry 60 per cent of the total mark and questions in Part B carry 40 per cent of the total. Tables for the normal and F-distribution are at the end of the examination paper. In cases where a student answers more questions than requested by the examination rubric, the policy of the Economics Department is that the student’s first set of answers up to the required number will be the ones that count (not the best answers). All remaining answers will be ignored. Allow enough time to submit your work. Waiting until the deadline for submission risks facing technical problems when submitting your work, due to limited network or systems capacity. By submitting this assessment, I pledge my honour that I have not violated UCL’s Assessment Reg- ulations which are detailed in https://www.ucl.ac.uk/academic-manual/chapters/chapter-6-student- casework-framework/section-9-student-academic-misconduct-procedure, which include (but are not lim- ited to) plagiarism, self-plagiarism, unauthorised collaboration between students, sharing my assess- ment with another student or third party, access another student’s assessment, falsification, contract cheating, and falsification of extenuating circumstances. ECON0019 1 TURN OVER PART A Answer all questions from this section. A.1 You have randomly sampled n individuals whom you follow over T 2 time periods. For individual i (= 1, ..., n) you observe (yit, xit), t = 1, ..., T , which satisfies yit = 0 + 1xit + ai + uit, t = 1, ..., T. (1) (a) Show that