Define both terms and explain the difference between microeconomics and macroeconomics. Is gross domestic product a microeconomic or macroeconomic question? Is the price change of pizza a microeconomic or macroeconomic question?

Assignment 1 STAA 551 - Fall 2016 1. Consider the simple linear model Yi = Bo + Bix + Eu, 6~N(0, 02), i = 1, ...,n. Given the sample of observations {(0,1), (3,8), (3,11), (4,13),(2,6),(1,4),(0,3),(3,10)), compute the following (use R, if you would like): a. Sxy b. Sxx C. B1 d. Bo 2. For the model indicated in #1, suppose the sample of observations was {(2,8),(1,6),(3,11), (4,13),(2,6),(1,4),(1,7),(2,9)), compute the following (use R, if you would like): a. Sxy b. Sxx C. BI d. Bo 3. Without any additional calculations, for which of the samples in #1 and #2 would you expect the variance of B1 to be larger? Justify your answer.Consider the Simple Linear Model that predicts housing prices based on square feet. Can you think of another variable you can add that would extend this model. How about bed rooms? . Multiple regression. Regression between one dependent variable and two or more independent variables square feet 1300 1700 1900 2400 2250 1600 2700 4000 Bed Rooms 2 2 2 3 3 3 4 4 Pricein kilodollars 130 195 200 240 260 225 300 400 . Try this calculator: pswwwsocscistatistics.comgtests[muItipleregressionldefaultasm L