Please write your answers on papers directly and submit them through le upload. 1. [12 points) You are hired by the US. department of commerce to examine the effect of changes in the exchange rate between Japan (Japanese Yen} and the US. (ER) on changes in the volume of US. imports from Japan {LU}. The data come from the International h-ionetary Fund (IL-[F] during 195 0-2019. (a) Present economic model of the hypothesis. (h) Turn your economic model in (a) into an econometric model. (c) What economic data sets (time series 1's. cross sectional} are you going to collect to analyze your empirical model? And explain why? (d) Explain the zero conditional mean assumption using your model in (h) Id (6 points) Suppose that you are asked to investigate the hypothesis that a grade on a nal exam in Econ 22? (grade) depends on classes attended (arr). The data come om ECCIN 22? class for the fall 21319 semester. grade = t + larr n (a) What economic data sets (time series 1's. cross sectional} are you going to collect to analyze your empirical model? And explain why? (h) Explain the zero conditional mean assumption using this model. 3. (16 points) Given are five observations for two variables, x (dependent variable) and y (dependent variable). All answers, if possible, should be rounded to one digit after the decimal. (a) Fill the table (No Need to fill in the shaded areas). Observation Vi Xi (Vi - V) (x , - x) ( Vi - V) (x; -x) (x; - x)2 7 2 2 18 6 9 9 26 13 23 20 Sum Mean (b) Estimate the relationship between x and y using OLS; that is, obtain the intercept and slope estimates in the equation. v = Bo + Bix4. (16 points) A sales manager collected the following data on annual sales [measured in $1,s) and years of experience (measured in years). (a) Fill the table 13o Need to fill in the shaded areas). (b) Estimate the relationship between x and y using 0L5; that is. obtain the intercept and slope estimates in the equation