Question 1

Which of the following is a nonlinear regression model?

Accepted Answer

A) y =   0 +   1x1/2 + u 
B) log y =   0 +   1log x +u 
C) y = 1 / (   0 +   1x) + u 
D) y =   0 +   1x + u 
A) y =   0 +   1x1/2 + u 
B) log y =   0 +   1log x +u 
C) y = 1 / (   0 +   1x) + u 
D) y =   0 +   1x + u C

Question 2

If xi and yi are positively correlated in the sample then the estimated slope is _____.​

Accepted Answer

A) ​less than zero 
B) ​greater than zero 
C) ​equal to zero 
D) ​equal to one 
A) ​less than zero 
B) ​greater than zero 
C) ​equal to zero 
D) ​equal to one B

Question 3

There are n-1 degrees of freedom in Ordinary Least Square residuals.

Accepted Answer

A) True 
 B)False  False

Question 4

If the total sum of squares (SST) in a regression equation is 81, and the residual sum of squares (SSR) is 25, what is the explained sum of squares (SSE)?

Accepted Answer

A) 64 
B) 56 
C) 32 
D) 18 
A) 64 
B) 56 
C) 32 
D) 18

Question 5

R2 is the ratio of the explained variation compared to the total variation.

Accepted Answer

A) True 
 B)False

Question 6

In a simple linear regression model, wage =   +   male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males.

Accepted Answer

A) True 
 B)False

Question 7

Consider a simple linear regression model, wage =   +   male + u, where male is a binary variable (1 if a person is male, and 0 otherwise). Now suppose that we know being a male means there is a lower probability of attaining higher education, another factor that is also expected to affect wage. Which of the key assumptions made to establish unbiasedness of OLS estimates do not hold?

Accepted Answer

A) Linear in parameters 
B) Random sampling 
C) Sample variation in the explanatory variable 
D) Zero conditional mean 
A) Linear in parameters 
B) Random sampling 
C) Sample variation in the explanatory variable 
D) Zero conditional mean

Question 8

The error term in a regression equation is said to exhibit homoskedasticty if _____.

Accepted Answer

A) it has zero conditional mean 
B) it has the same variance for all values of the explanatory variable 
C) it has the same value for all values of the explanatory variable 
D) if the error term has a value of one given any value of the explanatory variable 
A) it has zero conditional mean 
B) it has the same variance for all values of the explanatory variable 
C) it has the same value for all values of the explanatory variable 
D) if the error term has a value of one given any value of the explanatory variable

Question 9

A natural measure of the association between two random variables is the correlation coefficient.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?

Accepted Answer

A) The error term has an expected value of 1 given any value of the explanatory variable. 
B) The regression equation is linear in the explained and explanatory variables. 
C) The sample outcomes on the explanatory variable are all the same value. 
D) The error term has the same variance given any value of the explanatory variable. 
A) The error term has an expected value of 1 given any value of the explanatory variable. 
B) The regression equation is linear in the explained and explanatory variables. 
C) The sample outcomes on the explanatory variable are all the same value. 
D) The error term has the same variance given any value of the explanatory variable.

Question 11

In general, the constant that produces the smallest sum of squared deviations is always the sample average.

Accepted Answer

A) True 
 B)False

Question 12

If the residual sum of squares (SSR) in a regression analysis is 66 and the total sum of squares (SST) is equal to 90, what is the value of the coefficient of determination?

Accepted Answer

A) 0.73 
B) 0.55 
C) 0.27 
D) 1.2 
A) 0.73 
B) 0.55 
C) 0.27 
D) 1.2

Question 13

Which of the following will cause Ordinary Least Square (OLS) estimates of a simple regression model, y =   +   x + u to be biased?

Accepted Answer

A) Every individual in the population has the same probability of being observed in the sample. 
B) The observed values of span a wide range. 
C) The constant,   is greater than the coefficient,   . 
D) The constant, is greater than the coefficient, x . 
A) Every individual in the population has the same probability of being observed in the sample. 
B) The observed values of span a wide range. 
C) The constant,   is greater than the coefficient,   . 
D) The constant, is greater than the coefficient, x .

Question 14

Simple regression is an analysis of correlation between two variables.​

Accepted Answer

A) True 
 B)False

Question 15

In a regression equation, changing the units of measurement of only the independent variable does not affect the _____.

Accepted Answer

A) ​dependent variable 
B) ​slope 
C) ​intercept 
D) ​error term 
A) ​dependent variable 
B) ​slope 
C) ​intercept 
D) ​error term

Question 16

A dependent variable is also known as a(n) _____.

Accepted Answer

A) explanatory variable 
B) control variable 
C) predictor variable 
D) response variable 
A) explanatory variable 
B) control variable 
C) predictor variable 
D) response variable

Question 17

What is the estimated value of the slope parameter when the regression equation, y =   0 +   1x1 + u passes through the origin?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 18

In the equation y =   +   + u,   is the _____.

Accepted Answer

A) dependent variable 
B) independent variable 
C) slope parameter 
D) intercept parameter 
A) dependent variable 
B) independent variable 
C) slope parameter 
D) intercept parameter

Question 19

The variance of the slope estimator increases as the error variance decreases.

Accepted Answer

A) True 
 B)False

Question 20

In the regression of y on x, the error term exhibits heteroskedasticity if _____.

Accepted Answer

A) it has a constant variance 
B) Var(y|x) is a function of x 
C) x is a function of y 
D) y is a function of x 
A) it has a constant variance 
B) Var(y|x) is a function of x 
C) x is a function of y 
D) y is a function of x

Which of the following is a nonlinear regression model?

If x_i and y_i are positively correlated in the sample then the estimated slope is _____.

There are n-1 degrees of freedom in Ordinary Least Square residuals.

If the total sum of squares (SST) in a regression equation is 81, and the residual sum of squares (SSR) is 25, what is the explained sum of squares (SSE)?

R² is the ratio of the explained variation compared to the total variation.

In a simple linear regression model, wage = + male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males.

The error term in a regression equation is said to exhibit homoskedasticty if _____.

A natural measure of the association between two random variables is the correlation coefficient.

Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?

In general, the constant that produces the smallest sum of squared deviations is always the sample average.

If the residual sum of squares (SSR) in a regression analysis is 66 and the total sum of squares (SST) is equal to 90, what is the value of the coefficient of determination?

Which of the following will cause Ordinary Least Square (OLS) estimates of a simple regression model, y = + x + u to be biased?

Simple regression is an analysis of correlation between two variables.

In a regression equation, changing the units of measurement of only the independent variable does not affect the _____.

A dependent variable is also known as a(n) _____.

What is the estimated value of the slope parameter when the regression equation, y = ₀ + ₁x₁ + u passes through the origin?

In the equation y = + + u, is the _____.

The variance of the slope estimator increases as the error variance decreases.

In the regression of y on x, the error term exhibits heteroskedasticity if _____.

The Nature of Econometrics and Economic Data

Multiple Regression Analysis Estimation

Multiple Regression Analysis Inference

Multiple Regression Analysis Ols Asymptotics

Multiple Regression Analysis Further Issues

Multiple Regression Analysis With Qualitative Information

Heteroskedasticity

More on Specification and Data Issues

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Sries Data

Serial Correlation and Heteroskedasticity in Time Series Regressions

Pooling Cross Sections Across Time Simple Panel Data Methods

Advanced Panel Data Methods

Instrumental Variables Estimation and Two Strage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Correctons

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

Exam 2: The Simple Regression Model

Which of the following is a nonlinear regression model?

If xi and yi are positively correlated in the sample then the estimated slope is _____.​

There are n-1 degrees of freedom in Ordinary Least Square residuals.

If the total sum of squares (SST) in a regression equation is 81, and the residual sum of squares (SSR) is 25, what is the explained sum of squares (SSE)?

R2 is the ratio of the explained variation compared to the total variation.

In a simple linear regression model, wage = + male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males.

The error term in a regression equation is said to exhibit homoskedasticty if _____.

A natural measure of the association between two random variables is the correlation coefficient.

Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?

In general, the constant that produces the smallest sum of squared deviations is always the sample average.

If the residual sum of squares (SSR) in a regression analysis is 66 and the total sum of squares (SST) is equal to 90, what is the value of the coefficient of determination?

Which of the following will cause Ordinary Least Square (OLS) estimates of a simple regression model, y = + x + u to be biased?

Simple regression is an analysis of correlation between two variables.​

In a regression equation, changing the units of measurement of only the independent variable does not affect the _____.

A dependent variable is also known as a(n) _____.

What is the estimated value of the slope parameter when the regression equation, y = 0 + 1x1 + u passes through the origin?

In the equation y = + + u, is the _____.

The variance of the slope estimator increases as the error variance decreases.

In the regression of y on x, the error term exhibits heteroskedasticity if _____.

The Nature of Econometrics and Economic Data

Multiple Regression Analysis Estimation

Multiple Regression Analysis Inference

Multiple Regression Analysis Ols Asymptotics

Multiple Regression Analysis Further Issues

Multiple Regression Analysis With Qualitative Information

Heteroskedasticity

More on Specification and Data Issues

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Sries Data

Serial Correlation and Heteroskedasticity in Time Series Regressions

Pooling Cross Sections Across Time Simple Panel Data Methods

Advanced Panel Data Methods

Instrumental Variables Estimation and Two Strage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Correctons

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

If x_i and y_i are positively correlated in the sample then the estimated slope is _____.

R² is the ratio of the explained variation compared to the total variation.

Simple regression is an analysis of correlation between two variables.

What is the estimated value of the slope parameter when the regression equation, y = ₀ + ₁x₁ + u passes through the origin?