Question 1

The standard error of the regression measures the

Accepted Answer

A)  variability of the independent variable(s) relative to its (their) mean. 
B)  variability of the dependent variable relative to its mean. 
C)  variability of the dependent variable relative to the regression line. 
D)  average error that will result if the regression line is used to predict. 
A)  variability of the independent variable(s) relative to its (their) mean. 
B)  variability of the dependent variable relative to its mean. 
C)  variability of the dependent variable relative to the regression line. 
D)  average error that will result if the regression line is used to predict. C

Question 2

If the price of a commodity rises and the quantity sold increases, it does not prove that the demand curve for the commodity slopes upward.

Accepted Answer

A) True 
 B)False  True

Question 3

Using observational research approach, data is obtained from

Accepted Answer

A)  questioning a sample of consumers. 
B)  laboratory experiments. 
C)  observing consumers purchasing and consuming products. 
D)  real market tests in actual marketplace. 
A)  questioning a sample of consumers. 
B)  laboratory experiments. 
C)  observing consumers purchasing and consuming products. 
D)  real market tests in actual marketplace. C

Question 4

The scatter diagram represents the error terms from a simple linear regression estimated from time-series data. The error terms are plotted against time. The diagram shows evidence of

Accepted Answer

A)  homoscedasticity. 
B)  heteroscedasticity. 
C)  positive autocorrelation. 
D)  negative autocorrelation. 
A)  homoscedasticity. 
B)  heteroscedasticity. 
C)  positive autocorrelation. 
D)  negative autocorrelation.

Question 5

Analysis of variance tests the explanatory power of the entire regression.

Accepted Answer

A) True 
 B)False

Question 6

Calculate the equation of the linear function that is plotted on the graph.

Accepted Answer

The answer of Calculate the equation of the linear function...

Question 7

Heteroscedasticity refers to a situation in which the error terms from a regression analysis

Accepted Answer

A)  do not have equal variance. 
B)  are not normally distributed. 
C)  do not have a mean of zero. 
D)  All of the above are correct. 
A)  do not have equal variance. 
B)  are not normally distributed. 
C)  do not have a mean of zero. 
D)  All of the above are correct.

Question 8

A multiple regression analysis based on a data set that consists of 505 observations yielded the following estimated demand equation:
Q = 50 - 2P + 0.01I + 0.01A
Where P is price, I is income, and A is advertising. If price is equal to $20, income is equal to $2,000, and advertising expenditures are equal to $5,000, then the predicted quantity demanded (Q) is

Accepted Answer

A)  20. 
B)  40. 
C)  60. 
D)  80. 
A)  20. 
B)  40. 
C)  60. 
D)  80.

Question 9

Application of simple linear regression analysis to the estimation of a demand equation has yielded the following:
Q = 44 - 11P
If the current product price is P = $1 and the quantity sold per time period is Q = 30, then the error (e) for the current time period is equal to

Accepted Answer

A)  3 
B)  11 
C)  29 
D)  33 
A)  3 
B)  11 
C)  29 
D)  33

Question 10

Using consumer survey approach, data is obtained from

Accepted Answer

A)  questioning a sample of consumers. 
B)  laboratory experiments. 
C)  observing consumers purchasing and consuming products. 
D)  real market tests in actual marketplace. 
A)  questioning a sample of consumers. 
B)  laboratory experiments. 
C)  observing consumers purchasing and consuming products. 
D)  real market tests in actual marketplace.

Question 11

The Y intercept of a linear function is equal to the value of X when Y is equal to zero.

Accepted Answer

A) True 
 B)False

Question 12

Assume that a firm wants to use multiple regression analysis on Excel to estimate how the demand for its product X depends on price of its product, consumer's income (i)and a price of a substitute Y. Which of the following explicit linear form should the firm use?

Accepted Answer

A)  $Q _ { X } = a P _ { X } + b \left( I + P _ { Y } \right) + e$ 
B)  $Q _ { X } = a P _ { x } + b _ { 1 } I + b _ { 2 } P _ { Y }$ 
C)  $Q _ { X } = a + b _ { 1 } P _ { X } + b _ { 2 } I + b _ { 3 } P _ { Y } + e$ 
D)  $Q _ { X } = a + b _ { 1 } P _ { X } + b _ { 2 } I + b _ { 3 } Q _ { Y } P _ { Y } + e$ 
A)  $Q _ { X } = a P _ { X } + b \left( I + P _ { Y } \right) + e$ 
B)  $Q _ { X } = a P _ { x } + b _ { 1 } I + b _ { 2 } P _ { Y }$ 
C)  $Q _ { X } = a + b _ { 1 } P _ { X } + b _ { 2 } I + b _ { 3 } P _ { Y } + e$ 
D)  $Q _ { X } = a + b _ { 1 } P _ { X } + b _ { 2 } I + b _ { 3 } Q _ { Y } P _ { Y } + e$

Question 13

The application of multiple regression analysis to a time-series data set yields a calculated Durbin-Watson statistic that is equal to 1.00. If the lower test value at the 1 percent level is 1.28 and the upper value is 1.51, then there is evidence that

Accepted Answer

A)  multicollinearity is present. 
B)  multicollinearity is absent. 
C)  autocorrelation is present. 
D)  autocorrelation is absent. 
A)  multicollinearity is present. 
B)  multicollinearity is absent. 
C)  autocorrelation is present. 
D)  autocorrelation is absent.

Question 14

A significance test on the slope coefficient using the t ratio tests the hypothesis that the slope is equal to zero.

Accepted Answer

A) True 
 B)False

Question 15

Your coworker has run a simple univariate regression and computed the explained and the total variation in Y and asked you to compute the coefficient of correlation Expl.var.in $Y = \sum _ { t = 1 } ^ { n } \left( \hat { Y } _ { t } - \bar { Y } \right) ^ { 2 } = 550$
Total. var.in $Y = \sum _ { t = 1 } ^ { n } \left( Y _ { t } - \bar { Y } \right) ^ { 2 } = 895$

Accepted Answer

The answer of Your coworker has run a simple univariate...

Question 16

One advantage of estimating a function in which all variables have been transformed into their natural logarithms is that

Accepted Answer

A)  problems with multicollinearity will be eliminated. 
B)  problems with heteroscedasticity will be eliminated. 
C)  the estimated slope coefficients are all elasticities. 
D)  None of the above is correct. 
A)  problems with multicollinearity will be eliminated. 
B)  problems with heteroscedasticity will be eliminated. 
C)  the estimated slope coefficients are all elasticities. 
D)  None of the above is correct.

Question 17

The F test has, as its null hypothesis, the proposition that none of the estimated slope coefficients is different from zero.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following countries is the top exporter in dollar value of exports in the US in 2015?

Accepted Answer

A)  Harley-Davidson 
B)  United Technologies 
C)  JP Morgan Chase 
D)  Apple 
A)  Harley-Davidson 
B)  United Technologies 
C)  JP Morgan Chase 
D)  Apple

Question 19

One advantage of consumer clinics over market experiments is the ability to control the environment and screen out the effects of external events.

Accepted Answer

A) True 
 B)False

Question 20

The demand curve for a commodity can generally be approximated by drawing a graph with price on the horizontal axis and quantity on the vertical axis, plotting a series of points that represent observed combinations of price and quantity, and then drawing lines that connect the points.

Accepted Answer

A) True 
 B)False

The standard error of the regression measures the

If the price of a commodity rises and the quantity sold increases, it does not prove that the demand curve for the commodity slopes upward.

Using observational research approach, data is obtained from

The scatter diagram represents the error terms from a simple linear regression estimated from time-series data. The error terms are plotted against time. The diagram shows evidence of

Analysis of variance tests the explanatory power of the entire regression.

Calculate the equation of the linear function that is plotted on the graph.

Heteroscedasticity refers to a situation in which the error terms from a regression analysis

Application of simple linear regression analysis to the estimation of a demand equation has yielded the following: Q = 44 - 11P If the current product price is P = $1 and the quantity sold per time period is Q = 30, then the error (e) for the current time period is equal to

Using consumer survey approach, data is obtained from

The Y intercept of a linear function is equal to the value of X when Y is equal to zero.

Assume that a firm wants to use multiple regression analysis on Excel to estimate how the demand for its product X depends on price of its product, consumer's income (i)and a price of a substitute Y. Which of the following explicit linear form should the firm use?

The application of multiple regression analysis to a time-series data set yields a calculated Durbin-Watson statistic that is equal to 1.00. If the lower test value at the 1 percent level is 1.28 and the upper value is 1.51, then there is evidence that

A significance test on the slope coefficient using the t ratio tests the hypothesis that the slope is equal to zero.

One advantage of estimating a function in which all variables have been transformed into their natural logarithms is that

The F test has, as its null hypothesis, the proposition that none of the estimated slope coefficients is different from zero.

Which of the following countries is the top exporter in dollar value of exports in the US in 2015?

One advantage of consumer clinics over market experiments is the ability to control the environment and screen out the effects of external events.

The demand curve for a commodity can generally be approximated by drawing a graph with price on the horizontal axis and quantity on the vertical axis, plotting a series of points that represent observed combinations of price and quantity, and then drawing lines that connect the points.

The Nature and Scope of Managerial Economics

Demand, Supply, and Equilibrium Analysis

Optimization Techniques and New Management Tools

Demand Theory

Demand Forecasting

Production Theory and Estimation

Cost Theory and Estimation

Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition

Oligopoly and Firm Architecture

Game Theory and Strategic Behavior

Pricing Practices

Regulation and Antitrust: The Role of Government in the Economy

Risk Analysis

Long-Run Investment Decisions: Capital Budgeting

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Exam 5: Demand Estimation

The standard error of the regression measures the

If the price of a commodity rises and the quantity sold increases, it does not prove that the demand curve for the commodity slopes upward.

Using observational research approach, data is obtained from

The scatter diagram represents the error terms from a simple linear regression estimated from time-series data. The error terms are plotted against time. The diagram shows evidence of

Analysis of variance tests the explanatory power of the entire regression.

Calculate the equation of the linear function that is plotted on the graph.

Heteroscedasticity refers to a situation in which the error terms from a regression analysis

Application of simple linear regression analysis to the estimation of a demand equation has yielded the following: Q = 44 - 11P If the current product price is P = $1 and the quantity sold per time period is Q = 30, then the error (e) for the current time period is equal to

Using consumer survey approach, data is obtained from

The Y intercept of a linear function is equal to the value of X when Y is equal to zero.

Assume that a firm wants to use multiple regression analysis on Excel to estimate how the demand for its product X depends on price of its product, consumer's income (i)and a price of a substitute Y. Which of the following explicit linear form should the firm use?

The application of multiple regression analysis to a time-series data set yields a calculated Durbin-Watson statistic that is equal to 1.00. If the lower test value at the 1 percent level is 1.28 and the upper value is 1.51, then there is evidence that

A significance test on the slope coefficient using the t ratio tests the hypothesis that the slope is equal to zero.

One advantage of estimating a function in which all variables have been transformed into their natural logarithms is that

The F test has, as its null hypothesis, the proposition that none of the estimated slope coefficients is different from zero.

Which of the following countries is the top exporter in dollar value of exports in the US in 2015?

One advantage of consumer clinics over market experiments is the ability to control the environment and screen out the effects of external events.

The demand curve for a commodity can generally be approximated by drawing a graph with price on the horizontal axis and quantity on the vertical axis, plotting a series of points that represent observed combinations of price and quantity, and then drawing lines that connect the points.

The Nature and Scope of Managerial Economics

Demand, Supply, and Equilibrium Analysis

Optimization Techniques and New Management Tools

Demand Theory

Demand Forecasting

Production Theory and Estimation

Cost Theory and Estimation

Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition

Oligopoly and Firm Architecture

Game Theory and Strategic Behavior

Pricing Practices

Regulation and Antitrust: The Role of Government in the Economy

Risk Analysis

Long-Run Investment Decisions: Capital Budgeting

Filters