STATISTICS/ECONOMICS WAIVER EXAMINATIONS 2013
Waiver examinations in statistics and economics will be offered at the end of August for those incoming
students with adequate prior coursework in these areas. Those who successfully complete either or both of
these examinations will not be required to take the relevant core course(s) (i.e., Introduction to Statistics or
Managerial Economics for Public Administrators), but will be able to use these credits for additional program
of study or elective courses.
Students will have three hours to complete each exam. There is no penalty if a student attempts and exam
and does not do well. Students should prepare well for the exam, however, as they may only attempt the
waiver exam for each course once. All waiver exams must be completed before the first day of the semester
(no exceptions!). Students should sign up to take the exam in their respective program offices. Fall 2013
Waiver Exams will be offered at the following dates/times:
nd
Thursday, August 22
rd
Friday, August 23
Statistics Waiver Exam
9:00 am – Noon OR 1:00 pm – 4:00 pm
Economics Waiver Exam
9:00 am – Noon OR 1:00 pm – 4:00 pm
Information to help you prepare for each exam is provided below. Also attached are two recent syllabi for
both courses, the dates are not current on these syllabi. We do not provide copies of prior waiver exams.
Statistics Waiver Exam
The statistics waiver exam is a reasonably straightforward test that consists of three parts – descriptive
statistics, probability, and statistical inference.
Descriptive statistics covered in the exam include such things as sample means, medians, variances,
standard deviations and simple linear correlation and linear regression coefficients. Calculating such
statistics (other than correlation coefficients) may be a part of the exam; however, you will also be
expected to know how to interpret the findings reported as descriptive statistics.
The probability section requires knowledge of the basic laws (e.g., addition and multiplication theorems)
and concepts (e.g., statistical independence) of probability and the ability to compute joint and
conditional probabilities from a set of data. An understanding of the normal probability distribution is also
necessary.
The inferential statistics portion of the exam requires the ability to construct and interpret confidence
intervals from a set of data as well as stating and testing null hypotheses and interpreting the results. You
should be prepared to handle these issues for both a sample from a single population as well as a
comparison of samples from two populations. Similarly, it will be necessary to carry out those procedures
for both population means and proportions.
You will be allowed to bring a calculator to the exam; however, the exam will be closed book. Necessary
statistical tables, e.g., the standard normal, t-distributions, etc., will be provided. Students may also bring
one 8 ½’’ x 11’’ sheet of paper with formulas and other helpful information with them.
Students who have taken one or more statistics courses in the past are encouraged to sit for this exam.
We strongly suggest, however, that you spend some time reviewing for it since, although the questions
are quite basic, they do presume a good working knowledge of the subject and we have found that such
knowledge can quickly become rusty without some intensive review.
Almost any good introductory statistics book should provide the necessary basics for review. One book
we used in the past is Douglas Lind, William Marchal and Samuel Wathen, Statistical Techniques in
Business and Economics, New York: Irwin, McGraw-Hill; the book used this past year was David Moore
th
and George McCabe, Introduction to the Practice of Statistics (5 ed) New York: W.H. Freeman and
Company. They can serve as examples of the level of statistics we expect from our students. There are,
however, many other comparable texts on the market that will serve equally well.
Economics Waiver Exam
The economics waiver exam focuses on basic knowledge of microeconomics at the intermediate level.
The exam covers four areas of material: supply and demand, consumer theory, producer theory, and
public economics.
For supply and demand, students should demonstrate an understanding of how to represent a market
using supply and demand curves. You will need to understand what factors affect supply and demand
besides price, and what happens to equilibrium price and quantity when these factors change.
For consumer theory, you should be able to use budget constraints and indifference curves to graphically
represent a consumer optimum, and demonstrate what happens to the optimum when prices, income, or
preferences change. Based on this you should be able to derive income and price expansion paths, and
price and income elasticities. You should also be able to represent government policies, such as subsidies,
taxes, and in-kind transfers.
For producer theory, you will be tested on key concepts such as determining profit maximizing levels of
output and the cost minimizing mix of inputs to use in production. You will need to understand and be
able to calculate and graph different cost concepts, such as average and marginal costs. These graphs
should be used to find the point of profit maximization, the shutdown price, and long-run competitive
equilibrium.
Finally, you should have an understanding of basic concepts in public economics, such as externalities and
public goods. This includes a basic understanding of the principles of cost-benefit analysis, including the
calculation of present values.
For students who have taken an intermediate level microeconomics course in the past, you should
consider taking the waiver exam (especially economics majors). However, we suggest that you prepare
for the exam, because we will require a basic mastery of these concepts for passage. Any intermediate
textbooks will cover this material (except, possibly, the public economics portion).
The textbook used last year Microeconomics for Public Decisions by Anne C. Steinemann,
William C. Apgar, and H. James Brown. For review, a good introductory-level text book may also help,
although you should choose one that covers topics such as indifference curves, as not all introductory
texts include this level of detail. Some good choices for introductory texts are those by Michael Parkin
and by Tregarthen & Rittenberg. These texts won't have quite the depth of material that we'll cover in
class, but avoid unnecessary mathematics. Most intermediate microeconomics texts, including the one
we use in class, use more math than we cover in class, although they provide more complete coverage of
the topics covered during the semester. A copy of the syllabus from last year is available on the website
for Professor David Popp. (http://faculty.maxwell.syr.edu/dcpopp/index.html)
SAMPLE SYLLABUS FOR PAI 721: Introduction to Statistics / PAI 704
Required text:
Moore, David S., George P. McCabe, Bruce A. Craig. 2009. Introduction to the Practice of Statistics, 6th
edition. New York: W.H. Freeman and Company.
Moore, McCabe, and Craig is available at the Orange Bookstore.
It has been my experience that a single source is never enough to convey the necessary information
adequately. It is too expensive to purchase a variety of textbooks for this class, but it may be worthwhile
spending some time in the library reading other expositions on a particularly difficult topic.
Required software: SPSS version 17.0. For those of you who do not have SPSS, copies are located on
the computers in the student clusters.
Prerequisites:
A thorough understanding of high school algebra and geometry (content covered in the algebra and
geometry reviews).
Course Objectives and Description
The primary objective of this course is to introduce material that will make you better producers and
consumers of statistical data. A critical producer/consumer understands the strengths and weaknesses of
various statistical concepts and techniques as well as which to apply in a given situation. A
critical/producer can then use this information as a foundation for recommendations. Another important
objective of the course is to help you become familiar with statistical software. Recent developments in
statistical software allow analysts to develop a comprehensive understanding of their data and complete
more sophisticated analyses in relatively little time. Further, much of the knowledge gained using one
program can be transferred when using other packages.
Finally, I will use a variety of data sets in the course both to increase your knowledge of the data sets
available as well as to acquaint you with real data, which is usually a lot messier than the data used in
textbook examples.
Most classes will consist of lectures with examples. Despite what you may have heard, this is not a
mathematical statistics course. We will focus on “real world” applications of statistics, i.e., use examples
similar to the ones you may come across once you leave graduate school. Periodically, I will post my
lecture notes for each chapter in the class folder on Blackboard. In the past, students have found it useful
to have copies of the material that I will cover in class so they can concentrate on the content of the
lectures.
Feel free to bring these notes to class. My goal in the lecture is to explain the fundamental or especially
difficult material rather than walk through each section of the textbook. Students will also gain some
insight into the material when working through the problem sets. Students should not, however, interpret
the absence of a topic from lectures or problem sets (a topic that is, however, mentioned in the assigned
readings) as unimportant information.
Homework
I will assign seven problem sets during the semester. To allow students to plan ahead, tentative due dates
are posted in this syllabus. Students will be given notice of the final deadline for each problem set at least
one week in advance of the due date. Completed assignments should be deposited at the Center for
Policy Research Front Desk (426 Eggers Hall) and signed in before the deadline. This process will simplify
collection given the large number of students. I will not accept emailed assignments or assignments
handed to me personally. There are no exceptions. Homework that is late will NOT be accepted. I will post
solutions to the problem sets on Blackboard after the deadline. Students are allowed to work in small
groups to discuss the problems and develop solutions together. HOWEVER, each student must write-up
the solutions that he/she submits independently. Failure to write-up your solutions independently will be
considered a breach of the academic integrity policy. I will randomly choose one or two problems to grade
from each assignment. Your performance will be evaluated as either a “check plus,” “check,” or “check
minus.” A check plus is meant to signal to you a job well done: you have completed the question and
appear to have the correct answer and methods. A check signals an adequate performance, but that you
probably need to spend a little more time working on the assigned problems. A check minus signals that
you have performed poorly on the graded questions and probably need to spend considerably more time
studying the material. Of course, if you neglect to turn in the problem set, you will receive zero credit for
that assignment.
I. Descriptive Statistics
Topics: overview, measures of central tendency, measures of dispersion, standardization,
density curves, the normal distribution
Reading: Chapter 1, skip pp. 68-71
Dates: September 1, 3, 8, 10
Assignment 1 due: 12:00 pm, September 11
II. Statistical Relationships
Topics: covariance, correlation, the geometry of a line, simple regression, lurking
variables, influential points
Reading: Chapter 2
Dates: September 15, 17, 22, 24
Assignment 2 due: 12:00 pm, September 25
III. Producing Data
Topics: sampling, bias, experimental design, randomization
Reading: Chapter 3, skim section 3.4
Dates: September 29, October 1
Assignment 3 due: 12:00 pm, October 2
IV. Probability
Topics: rules of probability, random variables, probability distributions, Law of Large
Numbers
Reading: Chapter 4, omit section 4.5
Dates: October 6, 8, 13
Assignment 4 due: 12:00 pm, October 16
***Midterm Exam: October 22 – covers chapters 1, 2, 3, and 4 only
V. Sampling Distribution
Topics: binomial setting, binomial distribution, sampling distribution, Central Limit
Theorem
Reading: Chapter 5
Dates: October 15, 20, 27, 29
Assignment 5 due: 12:00 pm, October 30
VI. Inference
Topics: confidence intervals, significance levels, hypothesis testing, p-values, Type I error, Type II error,
power
Reading: Chapter 6
Dates: November 3, 10, 12, 17
Assignment 6 due 12:00 pm, November 20
Note: no class November 5
VII. Inference with Distributions
Topics: t-distribution, t-statistics, inference without knowing σ, standard error of a sample
mean, t-test comparing means
Reading: Chapter 7, pp. 417-428 and pp. 447-460 only
Dates: November 19, 24
Note: no class November 26 (Thanksgiving)
VIII. Simple Linear Regression
Topics: inference in simple linear regression, regression theory, coefficient of
determination, standard error of the slope
Reading: Chapter 10, omit pp. 574-579.
Dates: December 1, 3, 8,
Assignment 7 due: 12:00 pm, December 11
***Review December 10
***Final Exam: TBA
SAMPLE SYLLABUS for PAI 723: Economics for Public Decisions
Course Description:
The goal of this course is to introduce you to the application of the principles of microeconomic analysis
to policy questions. Upon completion of the course, you should be able to understand basic economic
analysis of public policy and be able to apply the principles of economics to these policies.
Of course, to apply economic principles to public policy, we first need to master the tools that economists
use. Microeconomics studies the allocation of scarce resources among individual agents. Examples of such
agents include consumers, firms, or workers. The allocation of resources is determined by interactions in
markets. The course will focus on how markets work. In particular, we will see how agents, such as buyers
and sellers, are able to interact in such a way that mutually beneficial exchanges are possible. As we
analyze various market scenarios, we will ask what role government intervention into the market may
play, and whether such intervention is necessary.
We begin by introducing the basic model of market interaction – supply and demand curves in perfect
competition. Most of the first half of the course will be spent developing the models of consumer and
producer behavior underlying these curves. Then, we examine situations in which the perfectly
competitive model breaks down, such as in the face of monopolies or pollution. We will be interested
both in the effects brought on by such complications and possible remedies for them. Finally, the course
concludes with an introduction of cost-benefit analysis.
Reading: The textbook for this course is Microeconomics for Public Decisions by Anne C. Steinemann,
William C. Apgar, and H. James Brown. It is available at the Orange bookstore. Please note that some
economics sections are using a different text, so be sure to purchase the correct one. Lectures will
roughly follow the material in the book, although material not in the book will be covered. You will be
responsible for all material covered in lecture, whether or not it is also in the text. You should use the
lectures, rather than the text, as a guide to the level of understanding you are expected to master. The
text is intended to be a supplement to the lectures. It provides background information, examples, and
does an excellent job of describing the intuition of economic theory, particularly as applied to public
decision makers.
In addition, a few supplementary readings will be used. These articles are mostly taken from sources
such as The New York Times and The Economist. Their purpose is to illustrate how the principles we
discuss in class apply in everyday situations. All of these articles are available electronically through the
Syracuse University library. Links to the articles are available on the class web site.
Prerequisites: The course is designed for students with little or no background in economics. The only
mathematics used are graphs and algebra. The math review for PA students at the beginning of the
semester will cover the necessary math for this course. If you are unfamiliar with this material and/or are
unsure whether you have the proper preparation, please see the information on mathematic resources
and tests found at www.maxwell.syr.edu/pa.
Home page: A home page for this course will be available at:
http://classes.maxwell.syr.edu/pa723/index.html
You can also connect to the home page through my personal home page, which can be found at:
http://faculty.maxwell.syr.edu/dcpopp/index.html
The web site includes information about the class, links to articles on the reading list, and useful
economics links. In addition, during the semester, problem sets and solutions will be posted. Finally,
after each class, I will post the main points of the lecture for review.
Policy Memos:
Each policy memorandum is based on one of the three case studies, which are included
on the course outline. The three cases provide students with practical applications of the tools taught in
this course to real policy issues, as well as practice at oral and written communication skills. They are
graded on effectiveness, including both writing and analysis. All students are expected to prepare for
each case, not just for the ones selected for memos, and to participate in case discussions. During case
discussions (as during all class discussions), students are expected to treat all their classmates with
respect.
Each student is required to hand in two cases to be graded. Memos are due at the end of class the day
they are listed on the syllabus. Thus, you may choose whether or not to hand in a memo based on the
discussion of the memo held in class. However, the memos must be typed, and changes made to the
memo during class will be ignored. Late memos will not be accepted, as it would be unfair to other
students to hand in a memo after the case has been discussed in class.
Problem Sets:
Problem sets will be distributed in class approximately once a week. Problem sets will be due at the
beginning of class on the day that they are due. Handwritten work is acceptable, but must be legible. Note
that problem sets are intended to be learning experiences for you. Problem sets will be graded on your
effort to solve the problem, not on correctness. You are encouraged to consult other students and myself
for help with the problem sets, with two caveats. First, the work that you turn in must be your own. If you
do work with someone, both of you should hand in solutions in your own words. Second, attempt the
problems yourself before consulting others. This is for your own benefit, since you won’t be able to
consult others during exams!
Finally, note that if you miss a class, it is your responsibility to find out if you missed any assignments or
handouts. Not being present when an assignment was given out is not an acceptable excuse for missed or
late work!
Course Outline
I. Introduction: Microeconomics and Markets
September 1 – Introduction
Reading: Chapter 1
“Food, drugs and economics,” The Economist, August 23, 2003, 54.
Kolata, Gina, “Tiny Heart Devices Reduce Death Rate, But Cost is Concern,” The New York Times, March
20, 2002, A1, A26.
September 3 & 8 – Supply and Demand
Reading: Chapter 2, Chapter 3, pp. 47-59, Chapter 4, pp. 77-84
Kruger, Alan B., “Economic Scene: The commercial resilience of New York is clear three years after the
9/11 attacks,” The New York Times, September 16, 2004, C2
Bradsher, Keith, “Fuel Subsidies Overseas Take A Toll on U.S.,” The New York Times, July 28, 2008, A1, A9.
September 10, 15 & 17 – Applications of Supply and Demand
Reading: Chapter 3, pp. 60-72 & Chapter 7
Varian, Hal R., “Economic Scene: Is Affordable Housing Becoming an Oxymoron?” The New York Times,
October 20, 2005, C2.
“The great Manhattan rip-off,” The Economist, June 7, 2003,25-26.
“Your part or mine?” The Economist, November 18, 2006,60-62.
“Trading Down,” The Economist, May 30, 2009, S4-S6.
Leonhardt, David, “To Reduce the Cost of Teenage Temptation, Why Not Just Raise the Price of Sin?”, The
New York Times, July 25, 2005, C3.
Mariani, John, “Gas tax cap comes off, but so what?” Syracuse Post-Standard, June 8, 2008, B1, B3.
September 22 – Case # 1, A Living Wage for Syracuse
II. Consumer Theory – Utility and the Derivation of the Demand Curve
September 24 & 29– Consumer Behavior: An Introduction to the Concept of Utility
Reading: Chapter 4, pp. 75-77 & 84-89
“The benevolence of self-interest,” The Economist, December 12, 1998, 80
Frank, Robert H., “Economic Scene: Of Hockey Players and Housing Prices,” The New York Times, October
27, 2005, C2.
October 1 & 6 – Applications of Consumer Theory
Reading: Chapter 4, pp. 90-99
Schultze, Charles L., “The Consumer Price Index: Conceptual Issues and Practical Suggestions,” Journal of
Economic Perspectives, Winter 2003, vol. 17, no. 1, pp. 3-22.
Postrel, Virginia, “Economic Scene: Research Changes Ideas About Children and Work,” The New York
Times, July 14, 2005, C2.
THURSDAY, OCTOBER 8 – QUIZ # 1
III. Producer Theory – Production, Costs, and the Derivation of the Supply Curve
October 13 – Production
Reading: Chapter 5, pp. 127-132
October 15 – The Costs of Production
Reading: Chapter 5, pp. 105-114
Kruger, Alan B., “Economic Scene: What’s the most cost effective way to encourage people to turn out to
vote?” The New York Times, October 14, 2004, C2.
October 20 & 22 – The Behavior of Firms Under Perfect Competition: Profit Maximization and
the Derivation of the Supply Curve
Reading: Chapter 5, pp. 114-125
Krauss, Clifford, “Ethanol’s Boom Stalling as Glut Depresses Price,” The New York Times, September 30,
2007, A1.
Krauss, Clifford, “Ethanol, Just Recently a Savior, Is Struggling,” The New York Times, February 12, 2009,
A1 & A21.
Davey, Monica, “Ethanol Is Feeding Hot Market for Farmland,” The New York Times, August 8, 2007, A1,
A16.
Gonzalez, David, “A Coffee Crisis’ Devastating Domino Effect in Nicaragua,” The New York Times, August
29, 2001, A3.
Varian, Hal R., “Economic Scene: Why Old Media and Tom Cruise Should Worry About Cheaper
Technology,” The New York Times, C3, October 19, 2006.
“Of horses’ teeth and liberty,” The Economist, October 27, 2007, 44
IV. Putting it All Together – Perfect Competition
October 27 – Perfect Competition and Economic Welfare
Reading: Chapter 6
Leonhardt, David, “A Time for Some Well-Placed Greed,” The New York Times, October 3, 2005, C3.
Leonhardt, David, “Limits In a System That’s Sick,” The New York Times, June 17, 2009, B1 &B9.
V. Market Power
October 29 & November 3 – The Effects of Market Power: Monopolies
Reading: Chapter 8, Chapter 10 pp. 235-250
November 5 – No Class
November 10 – Case #2, “Profit” Maximization for Non-Profits
VI. Factor Markets
November 12 – Factor Markets: Labor Supply and Demand
Reading: TBA
TUESDAY, NOVEMBER 17 – QUIZ #2
VII. Market Failures and the Role of the Government
November 19 – Public Goods
Reading: Chapter 10
Porter, Eduardo, “Radiohead’s Warm Glow,” New York Times, October 14, 2007, D14.
Gross, Daniel, “Economic View: What’s the Toll? It Depends on the Time of Day,” The New York Times,
February 11, 2007, C7.
November 24 – Externalities
Reading: Chapter 9
Leonhardt, David, “Soda’s a Tempting Tax Target,” The New York Times, May 20, 2009, B1 & B7.
Shoup, Donald, “Gone Parkin’,” The New York Times, March 29, 2007, A25.
VII. Cost-Benefit Analysis
December 1, 3 & 8 – Cost-Benefit Analysis
Reading: Chapters 12, 13, & 14
Wald, Matthew L, “Energy Dept. Said to Err on Coal Project,” The New York Times, March 11, 2009.
“Economic focus: The regulators’ best friend?” The Economist, April 2, 2005, p. 72.
December 10 – Case # 3 – Cost-Benefit Analysis