Question 1

)Rejecting a true null hypothesis

Accepted Answer

A) is a Type I error. 
B) is a Type II error. 
C) should not happen if a valid statistical test is used. 
D) depends on the size of the estimation sample. 
A) is a Type I error. 
B) is a Type II error. 
C) should not happen if a valid statistical test is used. 
D) depends on the size of the estimation sample. A

Question 2

If you are performing a left-tailed significance test and find the area to the left of |tc| is .99,what is the p-value?

Accepted Answer

A) .01 
B) .99 
C) .02 
D) .05 
A) .01 
B) .99 
C) .02 
D) .05 C

Question 3

You estimate a simple linear regression model using a sample of 25 observations and obtain the following results (estimated standard errors in parentheses below coefficient estimates): y = 97.25 + 19.74 *x
(3)86)(3.42)
You want to test the following hypothesis: H0: $\beta$2 = 1,H1: $\beta$2 >12.If you choose to reject the null hypothesis based on these results,what is the probability you have committed a Type I error?

Accepted Answer

A) between .01 and .02 
B) between .02 and .05 
C) less than .005 
D) It is impossible to determine without knowing the true value of $\beta$2 
A) between .01 and .02 
B) between .02 and .05 
C) less than .005 
D) It is impossible to determine without knowing the true value of $\beta$2 C

Question 4

Which of the following is not a component of a hypothesis tes?

Accepted Answer

A) null hypothesis 
B) goodness-of-fit 
C) test statistic 
D) rejection region 
A) null hypothesis 
B) goodness-of-fit 
C) test statistic 
D) rejection region

Question 5

You estimate a simple linear regression model using a sample of 62 observations and obtain the following results (estimated standard errors in parentheses below coefficient estimates): y = 97.25 + 33.74* x
(3)86)(9.42)
You want to test the following hypothesis: H0: $\beta$2 = 12,H1: $\beta$2 ≠12.If you choose to reject the null hypothesis based on these results,what is the probability you have committed a Type I error?

Accepted Answer

A) between .05 and .10 
B) between .01 and .025 
C) between .02 and .05 
D) It is impossible to determine without knowing the true value of $\beta$2 
A) between .05 and .10 
B) between .01 and .025 
C) between .02 and .05 
D) It is impossible to determine without knowing the true value of $\beta$2

Question 6

You want to test the hypothesis H0: (c1 $\beta$1 + c2$\beta$2)- c0 = 0 and H1: (c1 $\beta$1 + c2$\beta$2)- c0 ≠ 0
What test statistic should you use for the test?

Accepted Answer

A)    
B)    
C)    
D) $\chi$2=($\beta$1-$\beta$2)/se($\beta$1 +$\beta$2) 
A)    
B)    
C)    
D) $\chi$2=($\beta$1-$\beta$2)/se($\beta$1 +$\beta$2)

Question 7

If you are performing a two-tailed test of significance and you find that the area to the left of |tc| is .975,what is the p-value?

Accepted Answer

A) .025 
B) .050 
C) .975 
D) .950 
A) .025 
B) .050 
C) .975 
D) .950

Question 8

You estimate a simple linear regression model using a sample of 62 observations and obtain the following results (estimated standard errors in parentheses below coefficient estimates): y = 97.25 + 33.74 *x
(3)86)(9.42)
What are the endpoints of the interval estimator for $\beta$2 with a 95% interval estimate?

Accepted Answer

A) (14.90,52.58) 
B) (24.32,43.16) 
C) (-3.58,3.58) 
D) (30.16,37.32) 
A) (14.90,52.58) 
B) (24.32,43.16) 
C) (-3.58,3.58) 
D) (30.16,37.32)

Question 9

When should a left-tailed significance test be used?

Accepted Answer

A) When economic theory suggests the coefficient should be positive 
B) When it allows you to reject the null hypothesis at a lower p-value 
C) When economic theory suggests the coefficient should be negative 
D) When you know the true value of $\beta$2 is positive. 
A) When economic theory suggests the coefficient should be positive 
B) When it allows you to reject the null hypothesis at a lower p-value 
C) When economic theory suggests the coefficient should be negative 
D) When you know the true value of $\beta$2 is positive.

Question 10

You estimate a simple linear regression model using a sample of 25 observations and obtain the following results (estimated standard errors in parentheses below coefficient estimates): y = 97.25 + 19.74* x
(3)86)(3.42)
What are the endpoints of the interval estimator for $\beta$2 with a 98% interval estimate?

Accepted Answer

A) (-5.77,25.51) 
B) ( 16.32 ,23.16) 
C) (11.19,28.29) 
D) (12.90,26.58) 
A) (-5.77,25.51) 
B) ( 16.32 ,23.16) 
C) (11.19,28.29) 
D) (12.90,26.58)

Question 11

)Which of the following cannot be an alternative hypothesis?

Accepted Answer

A) $\beta$k = 0 B) $\beta$k ≠ 0 C) $\beta$k > 0 D) $\beta$k < 0 A) $\beta$k = 0 B) $\beta$k ≠ 0 C) $\beta$k > 0 D) $\beta$k < 0

Question 12

)How do you reduce the probability of committing a Type I error?

Accepted Answer

A) reduce $\alpha$ 
B) increase $\alpha$ 
C) use a two-tailed test 
D) increase the rejection region 
A) reduce $\alpha$ 
B) increase $\alpha$ 
C) use a two-tailed test 
D) increase the rejection region

Question 13

You want to test the hypothesis H0: (c1 $\beta$1 + c2$\beta$2)- c0 = 0 and H1: (c1 $\beta$1 + c2$\beta$2)- c0 ≠ 0
If the null hypothesis is true,how will the test statistic be distributed?

Accepted Answer

A) t( $\alpha$ /2) 
B) N(0,1) 
C) t(N-2) 
D) $\chi$2 (N-2 ) 
A) t( $\alpha$ /2) 
B) N(0,1) 
C) t(N-2) 
D) $\chi$2 (N-2 )

Question 14

You estimate a simple linear regression model using a sample of 62 observations and obtain the following results (estimated standard errors in parentheses below coefficient estimates): y = 97.25 + 33.74* x
(3)86)(9.42)
You want to test the following hypothesis: H0: $\beta$2 = 12,H1: $\beta$2 ≠12.If you choose to reject the null hypothesis based on these results,what is the probability you have committed a Type II error?

Accepted Answer

A) between .05 and .10 
B) between .01 and .025 
C) between .02 and .05 
D) It is impossible to determine without knowing the true value of $\beta$2 
A) between .05 and .10 
B) between .01 and .025 
C) between .02 and .05 
D) It is impossible to determine without knowing the true value of $\beta$2

Question 15

)In which case would testing the null hypothesis involve a two-tailed statistical test?

Accepted Answer

A) H1: Incentive pay for teachers does affect student achievement 
B) H1: Higher sales tax rates does not reduce state tax revenues 
C) H1: Extending the duration of unemployment benefits does not increase the length of joblessness 
D) H1: Smoking does not reduce life expectancy 
A) H1: Incentive pay for teachers does affect student achievement 
B) H1: Higher sales tax rates does not reduce state tax revenues 
C) H1: Extending the duration of unemployment benefits does not increase the length of joblessness 
D) H1: Smoking does not reduce life expectancy

Question 16

)For which alternative hypothesis do you reject H0 if |t| ≤t ( $\alpha$  /2 ,N-2)?

Accepted Answer

A) $\beta$k = c B) $\beta$k ≠ c C) $\beta$k > c D) $\beta$k < c A) $\beta$k = c B) $\beta$k ≠ c C) $\beta$k > c D) $\beta$k < c

Question 17

)For which alternative hypothesis do you reject H0 if t≤t ( $\alpha$ ,N-2)?

Accepted Answer

A) $\beta$k = c B) $\beta$0k ≠ c C) $\beta$k > c D) $\beta$k < c A) $\beta$k = c B) $\beta$0k ≠ c C) $\beta$k > c D) $\beta$k < c

Question 18

What does a p-value NOT tell you?

Accepted Answer

A) The size of the largest rejection region that would not contain the observed test statistic 
B) The probability that the null hypothesis is true and you would observe a test statistic more extreme than the one observed 
C) The highest value of $\alpha$for which you cannot reject the null hypothesis based on the data 
D) The probability that the null hypothesis is true 
A) The size of the largest rejection region that would not contain the observed test statistic 
B) The probability that the null hypothesis is true and you would observe a test statistic more extreme than the one observed 
C) The highest value of $\alpha$for which you cannot reject the null hypothesis based on the data 
D) The probability that the null hypothesis is true

)Rejecting a true null hypothesis

If you are performing a left-tailed significance test and find the area to the left of |t_c| is .99,what is the p-value?

Which of the following is not a component of a hypothesis tes?

You want to test the hypothesis H₀: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ = 0 and H₁: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ ≠ 0 What test statistic should you use for the test?

If you are performing a two-tailed test of significance and you find that the area to the left of |t_c| is .975,what is the p-value?

When should a left-tailed significance test be used?

)Which of the following cannot be an alternative hypothesis?

)How do you reduce the probability of committing a Type I error?

You want to test the hypothesis H₀: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ = 0 and H₁: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ ≠ 0 If the null hypothesis is true,how will the test statistic be distributed?

)In which case would testing the null hypothesis involve a two-tailed statistical test?

)For which alternative hypothesis do you reject H₀ if |t| ≤t ₍ _$\alpha$ _/2 _,N-2)?

)For which alternative hypothesis do you reject H₀ if t≤t ₍ _$\alpha$ _,N-2)?

What does a p-value NOT tell you?

An Introduction to Econometrics

Pp : Prob, Probability Primer, Probability Primer

The Simple Linear Regression Model

Prediction, Goodness-Of-Fit and Modeling Issues

The Multiple Regression Model

Further Inference in the Multiple Regression Model

Using Indicator Variables

Heteroskedasticity

Regression With Time Series Data: Stationary Variables

Random Regressors and Moment Based Estimation

Simultaneous Equations Models

Regression With Time Series Data: Nonstationary Variables

Vector Error Correction and Vector Autoregressive Models

Time-Varying Volatility and Arch Models

Panel Data Models

Qualitative and Limited Dependent Variable Models

Filters

Exam 4: Interval Estimation and Hypothesis Testing

)Rejecting a true null hypothesis

If you are performing a left-tailed significance test and find the area to the left of |tc| is .99,what is the p-value?

Which of the following is not a component of a hypothesis tes?

You want to test the hypothesis H0: (c1 β\betaβ 1 + c2 β\betaβ 2)- c0 = 0 and H1: (c1 β\betaβ 1 + c2 β\betaβ 2)- c0 ≠ 0 What test statistic should you use for the test?

If you are performing a two-tailed test of significance and you find that the area to the left of |tc| is .975,what is the p-value?

When should a left-tailed significance test be used?

)Which of the following cannot be an alternative hypothesis?

)How do you reduce the probability of committing a Type I error?

You want to test the hypothesis H0: (c1 β\betaβ 1 + c2 β\betaβ 2)- c0 = 0 and H1: (c1 β\betaβ 1 + c2 β\betaβ 2)- c0 ≠ 0 If the null hypothesis is true,how will the test statistic be distributed?

)In which case would testing the null hypothesis involve a two-tailed statistical test?

)For which alternative hypothesis do you reject H0 if |t| ≤t ( α\alphaα /2 ,N-2)?

)For which alternative hypothesis do you reject H0 if t≤t ( α\alphaα ,N-2)?

What does a p-value NOT tell you?

An Introduction to Econometrics

Pp : Prob, Probability Primer, Probability Primer

The Simple Linear Regression Model

Prediction, Goodness-Of-Fit and Modeling Issues

The Multiple Regression Model

Further Inference in the Multiple Regression Model

Using Indicator Variables

Heteroskedasticity

Regression With Time Series Data: Stationary Variables

Random Regressors and Moment Based Estimation

Simultaneous Equations Models

Regression With Time Series Data: Nonstationary Variables

Vector Error Correction and Vector Autoregressive Models

Time-Varying Volatility and Arch Models

Panel Data Models

Qualitative and Limited Dependent Variable Models

Filters

If you are performing a left-tailed significance test and find the area to the left of |t_c| is .99,what is the p-value?

You want to test the hypothesis H₀: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ = 0 and H₁: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ ≠ 0 What test statistic should you use for the test?

If you are performing a two-tailed test of significance and you find that the area to the left of |t_c| is .975,what is the p-value?

You want to test the hypothesis H₀: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ = 0 and H₁: (c₁ $\beta$ ₁ + c₂ $\beta$ ₂)- c₀ ≠ 0 If the null hypothesis is true,how will the test statistic be distributed?

)For which alternative hypothesis do you reject H₀ if |t| ≤t ₍ _$\alpha$ _/2 _,N-2)?

)For which alternative hypothesis do you reject H₀ if t≤t ₍ _$\alpha$ _,N-2)?