Question 1

In hypothesis testing, what we really care about is the size of the 1 coefficient.

Accepted Answer

A) True 
 B)False  False

Question 2

Describe what a power curve is, and provide a rough sketch of a power curve, and accurately label the x-axis and the y-axis.

Accepted Answer

A power curve characterizes the probability of rejecting the null hypothesis for each possible value of the parameter. The y-axis is the probability of rejecting the null for some alpha, while the x-axis is all the possible values of the parameter.

Question 3

We fail to reject the null hypothesis if the test statistic is greater than the critical value.

Accepted Answer

A) True 
 B)False  False

Question 4

A statistical significance test that is based on a small sample may not produce a result that is statistically significant even if the true value of the coefficient is different from the value in the null hypothesis. Such a situation is:

Accepted Answer

A)  Power of the test 
B)  Type I Error 
C)  Type II Error 
D)  Significance level of the test 
A)  Power of the test 
B)  Type I Error 
C)  Type II Error 
D)  Significance level of the test

Question 5

Assume that the two-sided 95% confidence interval for the effect of a price on amount of beef purchased is between 0.30 and 0.38. Which of the following statements is incorrect?

Accepted Answer

A)  We will reject the null hypothesis that this coefficient equals zero. 
B)  There is less than a 2.5% chance that a coefficient higher than 0.38 would produce the coefficient we actually observe. 
C)  There is a 95% chance that the true coefficient is between 0.30 and 0.38. 
D)  There is a 95% chance that a random sample will produce a confidence interval that includes the true coefficient. 
A)  We will reject the null hypothesis that this coefficient equals zero. 
B)  There is less than a 2.5% chance that a coefficient higher than 0.38 would produce the coefficient we actually observe. 
C)  There is a 95% chance that the true coefficient is between 0.30 and 0.38. 
D)  There is a 95% chance that a random sample will produce a confidence interval that includes the true coefficient.

Question 6

Describe the relationship between sample size and statistical significance.

Accepted Answer

A larger sampler size can yield a statis

Question 7

Explain what the distribution of 1 is under the null hypothesis H0: \beta = 0 and why.

Accepted Answer

It is a normally distributed random vari

Question 8

Statistical tools allow us to prove the null hypothesis is wrong.

Accepted Answer

A) True 
 B)False

Question 9

A null hypothesis of H0: \beta = 0 can be rejected at the 95% confidence interval if and only if:

Accepted Answer

A)  The 95% confidence interval contains zero 
B)  The 95% confidence interval does not contain zero 
C)  The null hypothesis is in the middle of the 95% confidence interval 
D)  The sample size is sufficiently large (n>=30) 
A)  The 95% confidence interval contains zero 
B)  The 95% confidence interval does not contain zero 
C)  The null hypothesis is in the middle of the 95% confidence interval 
D)  The sample size is sufficiently large (n>=30)

Question 10

Explain the difference between statistical significance and substantive significance.

Accepted Answer

A substantive significant coefficient is

Question 11

Reducing the significance level (alpha) will:

Accepted Answer

A)  Will increase the probability of making a Type I Error 
B)  Will increase the probability of making a Type II Error 
C)  Will not affect the probability of making either error 
D)  Will decrease the probability of making a Type II Error 
A)  Will increase the probability of making a Type I Error 
B)  Will increase the probability of making a Type II Error 
C)  Will not affect the probability of making either error 
D)  Will decrease the probability of making a Type II Error

Question 12

In which case would we choose to a one-sided alternative hypothesis over a two-sided alternative hypothesis?

Accepted Answer

A)  It does not matter what type of alternative hypothesis we specify. 
B)  Choose a one sided alternative hypothesis when the theory and literature suggests either that the coefficient should be greater than zero or that the coefficient should be less than zero. 
C)  We choose a one sided alternative hypothesis when we have a large sample size. 
D)  We choose a one sided alternative hypothesis when we specify a low (0.01) alpha. 
A)  It does not matter what type of alternative hypothesis we specify. 
B)  Choose a one sided alternative hypothesis when the theory and literature suggests either that the coefficient should be greater than zero or that the coefficient should be less than zero. 
C)  We choose a one sided alternative hypothesis when we have a large sample size. 
D)  We choose a one sided alternative hypothesis when we specify a low (0.01) alpha.

Question 13

Show the full equation to calculate the t-statistic.

Accepted Answer

The answer of Show the full equation to calculate the...

Question 14

Type II errors occur when we fail to reject a null hypothesis even when it is false.

Accepted Answer

A) True 
 B)False

Question 15

Type I errors occur when we fail to reject a null hypothesis even when it is false.

Accepted Answer

A) True 
 B)False

Question 16

A null and alternative hypothesis are statements pertaining to:

Accepted Answer

A)  Sample parameters 
B)  Sample statistics 
C)  Population parameters 
D)  It depends - In some cases it is population parameters, in others it is the sample statistics. 
A)  Sample parameters 
B)  Sample statistics 
C)  Population parameters 
D)  It depends - In some cases it is population parameters, in others it is the sample statistics.

Question 17

If we decrease the significance level (alpha) all else being equal, the power of the test will:

Accepted Answer

A)  Decrease 
B)  Increase 
C)  Won't change 
D)  It depends - need more information 
A)  Decrease 
B)  Increase 
C)  Won't change 
D)  It depends - need more information

Question 18

A large sample will tend to produce high-power statistical tests while small samples will tend to produce low power statistical tests.

Accepted Answer

A) True 
 B)False

Question 19

Explain the t distribution and explain what its tails are like and why?

Accepted Answer

The t distribution is bell-shaped like a

Question 20

Which of the following will tend to reduce the size of a confidence interval?

Accepted Answer

A)  Decrease the significance level (alpha). 
B)  Increase the sample size 
C)  Decrease the standard deviation of the population 
D)  You can't do anything to reduce the interval 
A)  Decrease the significance level (alpha). 
B)  Increase the sample size 
C)  Decrease the standard deviation of the population 
D)  You can't do anything to reduce the interval

In hypothesis testing, what we really care about is the size of the ₁ coefficient.

Describe what a power curve is, and provide a rough sketch of a power curve, and accurately label the x-axis and the y-axis.

We fail to reject the null hypothesis if the test statistic is greater than the critical value.

A statistical significance test that is based on a small sample may not produce a result that is statistically significant even if the true value of the coefficient is different from the value in the null hypothesis. Such a situation is:

Assume that the two-sided 95% confidence interval for the effect of a price on amount of beef purchased is between 0.30 and 0.38. Which of the following statements is incorrect?

Describe the relationship between sample size and statistical significance.

Explain what the distribution of ₁ is under the null hypothesis H₀: \beta = 0 and why.

Statistical tools allow us to prove the null hypothesis is wrong.

A null hypothesis of H₀: \beta = 0 can be rejected at the 95% confidence interval if and only if:

Explain the difference between statistical significance and substantive significance.

Reducing the significance level (alpha) will:

In which case would we choose to a one-sided alternative hypothesis over a two-sided alternative hypothesis?

Show the full equation to calculate the t-statistic.

Type II errors occur when we fail to reject a null hypothesis even when it is false.

Type I errors occur when we fail to reject a null hypothesis even when it is false.

A null and alternative hypothesis are statements pertaining to:

If we decrease the significance level (alpha) all else being equal, the power of the test will:

A large sample will tend to produce high-power statistical tests while small samples will tend to produce low power statistical tests.

Explain the t distribution and explain what its tails are like and why?

Which of the following will tend to reduce the size of a confidence interval?

The Quest for Causality

Stats in the Wild: Good Data Practices

Bivariate Ols: the Foundation of Econometric Analysis

Multivariate Ols: Where the Action Is

Dummy Variables: Smarter Than You Think

Specifying Models

Using Fixed Effects Models to Fight Endogeneity in Panel Data a

Instrumental Variables: Using Exogenous Variation to Fight Endogen

Experiments: Dealing With Real-World Challenges

Regression Discontinuity: Looking for Jumps in Data

Dummy Dependent Variables

Time Series: Dealing With Stickiness Over Time

Advanced Ols

Advanced Panel Data

Filters

Exam 4: Hypothesis Testing and Interval Estimation: Answering Research

In hypothesis testing, what we really care about is the size of the 1 coefficient.

Describe what a power curve is, and provide a rough sketch of a power curve, and accurately label the x-axis and the y-axis.

We fail to reject the null hypothesis if the test statistic is greater than the critical value.

A statistical significance test that is based on a small sample may not produce a result that is statistically significant even if the true value of the coefficient is different from the value in the null hypothesis. Such a situation is:

Assume that the two-sided 95% confidence interval for the effect of a price on amount of beef purchased is between 0.30 and 0.38. Which of the following statements is incorrect?

Describe the relationship between sample size and statistical significance.

Explain what the distribution of 1 is under the null hypothesis H0: \beta = 0 and why.

Statistical tools allow us to prove the null hypothesis is wrong.

A null hypothesis of H0: \beta = 0 can be rejected at the 95% confidence interval if and only if:

Explain the difference between statistical significance and substantive significance.

Reducing the significance level (alpha) will:

In which case would we choose to a one-sided alternative hypothesis over a two-sided alternative hypothesis?

Show the full equation to calculate the t-statistic.

Type II errors occur when we fail to reject a null hypothesis even when it is false.

Type I errors occur when we fail to reject a null hypothesis even when it is false.

A null and alternative hypothesis are statements pertaining to:

If we decrease the significance level (alpha) all else being equal, the power of the test will:

A large sample will tend to produce high-power statistical tests while small samples will tend to produce low power statistical tests.

Explain the t distribution and explain what its tails are like and why?

Which of the following will tend to reduce the size of a confidence interval?

The Quest for Causality

Stats in the Wild: Good Data Practices

Bivariate Ols: the Foundation of Econometric Analysis

Multivariate Ols: Where the Action Is

Dummy Variables: Smarter Than You Think

Specifying Models

Using Fixed Effects Models to Fight Endogeneity in Panel Data a

Instrumental Variables: Using Exogenous Variation to Fight Endogen

Experiments: Dealing With Real-World Challenges

Regression Discontinuity: Looking for Jumps in Data

Dummy Dependent Variables

Time Series: Dealing With Stickiness Over Time

Advanced Ols

Advanced Panel Data

Filters

In hypothesis testing, what we really care about is the size of the ₁ coefficient.

Explain what the distribution of ₁ is under the null hypothesis H₀: \beta = 0 and why.

A null hypothesis of H₀: \beta = 0 can be rejected at the 95% confidence interval if and only if: