You must hand in a digital source file that the instructors can compile (using knitr) to create a PDF or HTML file with your problem set. The entire problem set must be handed in as a digitial file. Equations must be typeset in the document itself. The TA will provide instructions about how to hand in assignments.

• Read KNN chapters 1, 6.1-6.5, 6.8-6.9, 7.5-7.6, OpenIntro Chapters 7 and 8
• Derive the SLR estimators b0 and b1
• Problems from KNN Chapter 1: 5, 6, 7, 10, 11, 27, 28, 36, 42
• Problems from KNN Chapter 6: 2, 3, 5(a-d), 9, 10(a,b,d), 15(a-d), 22, 31
• EXTRA CREDIT: Create a simulation where you show an example of omitted variable bias.