HW1 (Due Next Wednesday May 17, at the beginning of class)

May 9, 2017

0.1 HW1

Please explain and show all workings.

Q1. Chapter 2 from the text book, fifth Edition :

a) Exercise 2.2.

b) Exercise 2.5.

c) Exercise 2.6.

d) Exercise 2.9 (do only part a and b)

e) Exercise 2.15 ( do only part a and b). This is a data question, please download the data set from

blackboard and conduct the empirical analysis in STATA.

Q2. Consider the simple linear regression yi = β1 + β2Xi + ui for i = 1, 2, . . . ,n, where β1 and β2

are population parameters and the ui are IID (0,σ2).

(a) Derive OLS estimates (β̂1, β̂2) for the parameters (β1, β2), respectively. Note that this is done by

minimizing the residuals sum of squares with respect to β̂1and β̂2.

(b) Show that β̂1and β̂2 are unbiased estimators for the population parameters (β1, β2), respectively.

(c) derive the variances of β̂1and β̂2.

(d) Suppose β̂ ∗ 2 = β̂2 +

1 n , where n is the sample size. Is β̂

∗ 2 unbiased, show it? Note that β̂2 is derived

in part c.

(e) Is β̂ ∗ 2 asymptotically unbaised, show it?

1

Q3. Consider the simple linear regression yi = β1 + β2Xi + ui for i = 1, 2, . . . ,n. The ui are IID

(0,σ2) and verify the following numerical properties of OLS

a. Σni=1ûi = 0

b. Σni=1ûiXi = 0

c. Σni=1ûiŶi = 0

d. Σni=1Ŷi = Σ n i=1Yi

Q4. Suppose β2 = 0 ⇒yi = β1 + ui,i = 1, 2, . . . ,n. The ui are IID (0,σ2).

a. derive the estimate of β1 and called it β̂1

b. derive the variance of β̂1

2

INT 113 Module Two Discussion Sample: Cultural Analysis

Follow the format of this post to complete your own analysis. You will use some of the same

resources cited in the bibliography, so please follow the same format.

Hofstede’s Dimensions of Culture: Turkey (Hofstede, 2015)

Power Distance: Score of 66

 Dependent

 Hierarchical

 Unapproachable managers

 Patriarchal

 Formal communication with management

Individualism: Score of 37

 Strong collectivistic society

 Influential group mindset

 Indirect communication, need for harmony

 Moral foundation to relationships

 Strong influence of nepotism

Masculinity: Score of 45

 More feminine cultural style

 Consensus in the group

 Sympathetic

 Avoidance of conflict

 Desire for leisure time

Uncertainty Avoidance: Score of 85  Strong desire for laws and rules

 Ritualistic

 Religious

Long-Term Orientation: Score of 46

 Middle of the scale, nothing inferred

Communication (Turkey - Turkish Language, Culture, Customs and Etiquette, 2016)

Language: Turkish (90%), Kurdish (6%), Arabic (1.2%)

Nonverbal: Shaking hands and kissing on both cheeks, standing to greet those senior to you,

crossing arms while talking is impolite, staring is typical

Business Etiquette (“Turkey - Turkish Language, Culture, Customs and Etiquette,” 2016)

 Appointments are necessary

 Punctuality is expected—likely to be left waiting

 Small talk is important for relationship building

 Personal space is not recognized—standing very close is typical

 Eye contact while speaking stands for sincerity

Business Observations:

 Communication risks might exist between Turkey and countries that are more direct in

communication, especially early in a business relationship.

 Due to the hierarchical structure in business, management should expect a high level of respect

to be shown. Communication will be more indirect between management and subordinates.

 Considerations for religious beliefs and rituals will be important in the workplace.

 Training on conflict management in the Turkish culture might be useful. A manager should

outline the best approach to conflict management with the use of indirect communication.

Bibliography

Hofstede, G. (2015). Turkey - Geert Hofstede. Geert-hofstede.com. Retrieved from http://geert-

hofstede.com/turkey.html

Turkey - Turkish language, culture, customs and etiquette. (2016). Commisceo-Global. Retrieved from

http://www.commisceo-global.com/country-guides/turkey-guide