I just received the price quote for Order ID : TTs150311Tricia Nusius1. However, I submitted the wrong question.I attached the correct one. Document Preview:EconS 511 Midterm l Exam Due March 22,2011 The take home portion of the midterm exam is strictly an individual effort. No collaboration among students. Questions of clarification should be directed to the instructor and not the TA. The write up. Clear, concise, and complete answers to each of the problems are required. The answers should be presented indicating exactly which part of each question is being addressed. Appropriate output should be integrated into the write up to sufficiently justi$ and support your answers. Section I. (50 total points) This problem need not be typed. 1. Consider the model Y = xF +e with n observations and p is (kxl). Suppose you decided to apply a Box-Cox transformation to the matrix x such that )-Y=r(z)F+e ,where ,,(^, =+. Assumethe e,are iid(infact,normally ) distributed with mean zero and constant variance o2 ) and that-r is nonstochastic. The model parameters are ?,,p,oz . a) What is the method of least squares? Setup an optimization problem of the Box-Cox model and explicitly and completely identiSr appropriate assumptions. b) What is generalized method of moments? Setup an optimization problem of the Box-Cox model and explicitly and completely identiff appropriate assumptions. c) Is it feasible that the estimators for p in parts a)-b) are identical? d) Derive an estimator of p,o2 using GMM for a given 1,. e) Describe how to jointly estimate L,$,ousing GMM. Attachments: Question-corr.pdf