The first midterm examination is on Wednesday, October 29, 2003, and will carry a 20 percent weight. Here are some guidelines for it.

WHAT TO STUDY:
You are responsible only for the topics covered in class. Review quickly Chapters 3 through 7. Read Chapter 8 and 9. There are several sample questions in the text book. The ones marked with a dagger have their answers in Appendix B. Check out the links for old Midterm #1 and print out ALL the documents. Study only the heterocedasticity and serial correlation questions.

WHAT TO BRING:
1) Pen(s) to write. If you use a pencil, you forfeit the right to complain about the grading, unless you pick up the exam from the TA's office and take care of grading complaints before leaving his/her office. You need not bring paper or blue book because you will be writing the answers on the paper itself.
2) A SINGLE 4 inch by 6 inch index card or paper on which you should copy down all formulas and any other information you think you would want to reference. Note that the index card should be handwritten and not photo copied from the book. The idea is that, in the process of deciding what to copy and actually copying, you would have learned the material and wouldn't need to look at the card except for messy formulas.
3) A calculator that does basic arithmetic functions. If you bring a solar calculator, sit below a light.

TIME LIMITS:
You are not allowed to turn the cover page to look at the exam until everyone has received the papers and I signal that you may start writing. Also, you must stop writing when asked to. You will, however, be given a two-minute warning so that you can wrap things up. TEN POINTS WILL BE DEDUCTED FOR EACH MINUTE OF EXTRA TIME IT TAKES YOU TO STOP WRITING.
If you need help with difficult material, feel free to ask for help. Remember what I said, "One person can lead a horse to the water, but 20 cannot make him drink." There is no sense in going to the exam feeling frustrated about materials you haven't understood. In this course you will not be able to study the day before an exam and expect to do well. You should be in constant touch with the material, the messages, and all the assignments posted on the computer. We are here to help as much as possible, but you should do your part. Doing the homeworks will be of great help. Don't expect any sympathy from me if you don't turn in homeworks.