Question 1

Which of the following statements is true of hypothesis testing?

Accepted Answer

A) The t test can be used to test multiple linear restrictions. 
B) A test of single restriction is also referred to as a joint hypotheses test. 
C)  A restricted model will always have fewer parameters than its unrestricted model. 
D)  OLS estimates maximize the sum of squared residuals. 
A) The t test can be used to test multiple linear restrictions. 
B) A test of single restriction is also referred to as a joint hypotheses test. 
C)  A restricted model will always have fewer parameters than its unrestricted model. 
D)  OLS estimates maximize the sum of squared residuals. C

Question 2

Which of the following statements is true of confidence intervals?

Accepted Answer

A) Confidence intervals in a CLM are also referred to as point estimates. 
B) Confidence intervals in a CLM provide a range of likely values for the population parameter. 
C)  Confidence intervals in a CLM do not depend on the degrees of freedom of a distribution. 
D)  Confidence intervals in a CLM can be truly estimated when heteroskedasticity is present. 
A) Confidence intervals in a CLM are also referred to as point estimates. 
B) Confidence intervals in a CLM provide a range of likely values for the population parameter. 
C)  Confidence intervals in a CLM do not depend on the degrees of freedom of a distribution. 
D)  Confidence intervals in a CLM can be truly estimated when heteroskedasticity is present. B

Question 3

The significance level of a test is:

Accepted Answer

A) the probability of rejecting the null hypothesis when it is false. 
B) one minus the probability of rejecting the null hypothesis when it is false. 
C)  the probability of rejecting the null hypothesis when it is true. 
D)  one minus the probability of rejecting the null hypothesis when it is true. 
A) the probability of rejecting the null hypothesis when it is false. 
B) one minus the probability of rejecting the null hypothesis when it is false. 
C)  the probability of rejecting the null hypothesis when it is true. 
D)  one minus the probability of rejecting the null hypothesis when it is true. C

Question 4

A normal variable is standardized by:

Accepted Answer

A) subtracting off its mean from it and multiplying by its standard deviation. 
B) adding its mean to it and multiplying by its standard deviation. 
C)  subtracting off its mean from it and dividing by its standard deviation. 
D)  adding its mean to it and dividing by its standard deviation. 
A) subtracting off its mean from it and multiplying by its standard deviation. 
B) adding its mean to it and multiplying by its standard deviation. 
C)  subtracting off its mean from it and dividing by its standard deviation. 
D)  adding its mean to it and dividing by its standard deviation.

Question 5

Which of the following correctly defines F statistic if SSRr represents sum of squared residuals from the restricted model of hypothesis testing, SSRur represents sum of squared residuals of the unrestricted model, and q is the number of restrictions placed?

Accepted Answer

A) F =   
B) F =   
C)  F =
  
D)  F =
  
A) F =   
B) F =   
C)  F =
  
D)  F =

Question 6

Which of the following tools is used to test multiple linear restrictions?

Accepted Answer

A) t test 
B) z test 
C)  F test 
D)  Unit root test 
A) t test 
B) z test 
C)  F test 
D)  Unit root test

Question 7

The general t statistic can be written as:

Accepted Answer

A) t =   
B) t =   
C)  t =
  
D)  t =
  
A) t =   
B) t =   
C)  t =
  
D)  t =

Question 8

Which of the following statements is true?

Accepted Answer

A) If the calculated value of F statistic is higher than the critical value, we reject the alternative hypothesis in favor of the null hypothesis. 
B) The F statistic is always nonnegative as SSRr is never smaller than SSRur. 
C)  Degrees of freedom of a restricted model is always less than the degrees of freedom of an unrestricted model. 
D)  The F statistic is more flexible than the t statistic to test a hypothesis with a single restriction. 
A) If the calculated value of F statistic is higher than the critical value, we reject the alternative hypothesis in favor of the null hypothesis. 
B) The F statistic is always nonnegative as SSRr is never smaller than SSRur. 
C)  Degrees of freedom of a restricted model is always less than the degrees of freedom of an unrestricted model. 
D)  The F statistic is more flexible than the t statistic to test a hypothesis with a single restriction.

Question 9

Which of the following statements is true?

Accepted Answer

A) Taking a log of a nonnormal distribution yields a distribution that is closer to normal. 
B) The mean of a nonnormal distribution is 0 and the variance is   2. 
C)  The CLT assumes that the dependent variable is unaffected by unobserved factors. 
D)  OLS estimators have the highest variance among unbiased estimators. 
A) Taking a log of a nonnormal distribution yields a distribution that is closer to normal. 
B) The mean of a nonnormal distribution is 0 and the variance is   2. 
C)  The CLT assumes that the dependent variable is unaffected by unobserved factors. 
D)  OLS estimators have the highest variance among unbiased estimators.

Question 10

If R2ur = 0.6873, R2r = 0.5377, number of restrictions = 3, and n - k - 1 = 229, F statistic equals:

Accepted Answer

A) 21.2 
B) 28.6 
C)  36.5 
D)  42.1 
A) 21.2 
B) 28.6 
C)  36.5 
D)  42.1

Question 11

The ordinary least square estimators have the smallest variance among all the unbiased estimators.​

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of confidence intervals?

Accepted Answer

A) ​Two quantities   and c are required to construct the confidence intervals. 
B) To obtain the value c in the confidence interval, only the degrees of freedom need to be known. 
C)  Confidence intervals are also called interval estimates. 
D)  ​A constructed confidence intervals will always contain the population parameter
  . 
A) ​Two quantities   and c are required to construct the confidence intervals. 
B) To obtain the value c in the confidence interval, only the degrees of freedom need to be known. 
C)  Confidence intervals are also called interval estimates. 
D)  ​A constructed confidence intervals will always contain the population parameter
  .

Question 13

Consider the equation, y =   +   1x1 +   
  2x2 + u. A null hypothesis, H0:   2 = 0 states that:

Accepted Answer

A) x2 has no effect on the expected value of   2. 
B) x2 has no effect on the expected value of y. 
C) 
  2 has no effect on the expected value of y. 
D)  y has no effect on the expected value of x2. 
A) x2 has no effect on the expected value of   2. 
B) x2 has no effect on the expected value of y. 
C) 
  2 has no effect on the expected value of y. 
D)  y has no effect on the expected value of x2.

Question 14

Whenever the dependent variable takes on just a few values it is close to a normal distribution.

Accepted Answer

A) True 
 B)False

Question 15

If the calculated value of the t statistic is greater than the critical value, the null hypothesis, H0 is rejected in favor of the alternative hypothesis, H1.

Accepted Answer

A) True 
 B)False

Question 16

The normality assumption implies that:

Accepted Answer

A) the population error u is dependent on the explanatory variables and is normally distributed with mean equal to one and variance   2. 
B) the population error u is independent of the explanatory variables and is normally distributed with mean equal to one and variance   . 
C)  the population error u is dependent on the explanatory variables and is normally distributed with mean zero and variance
  . 
D)  the population error u is independent of the explanatory variables and is normally distributed with mean zero and variance
  2. 
A) the population error u is dependent on the explanatory variables and is normally distributed with mean equal to one and variance   2. 
B) the population error u is independent of the explanatory variables and is normally distributed with mean equal to one and variance   . 
C)  the population error u is dependent on the explanatory variables and is normally distributed with mean zero and variance
  . 
D)  the population error u is independent of the explanatory variables and is normally distributed with mean zero and variance
  2.

Question 17

H1: âj   0, where âj is a regression coefficient associated with an explanatory variable, represents a one-sided alternative hypothesis.

Accepted Answer

A) True 
 B)False

Question 18

Standard errors must always be positive.

Accepted Answer

A) True 
 B)False

Question 19

In regression analysis, the standard errors should not always be included along with the estimated coefficients.
​

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a statistic that can be used to test hypotheses about a single population parameter?

Accepted Answer

A) F statistic 
B) t statistic 
C) 
  statistic 
D)  Durbin Watson statistic 
A) F statistic 
B) t statistic 
C) 
  statistic 
D)  Durbin Watson statistic

Which of the following statements is true of hypothesis testing?

Which of the following statements is true of confidence intervals?

The significance level of a test is:

A normal variable is standardized by:

Which of the following correctly defines F statistic if SSRr represents sum of squared residuals from the restricted model of hypothesis testing, SSRur represents sum of squared residuals of the unrestricted model, and q is the number of restrictions placed?

Which of the following tools is used to test multiple linear restrictions?

The general t statistic can be written as:

Which of the following statements is true?

Which of the following statements is true?

If R²ur = 0.6873, R²r = 0.5377, number of restrictions = 3, and n - k - 1 = 229, F statistic equals:

The ordinary least square estimators have the smallest variance among all the unbiased estimators.

Which of the following is true of confidence intervals?

Consider the equation, y = + ₁x₁ ₊ ₂x₂ + u. A null hypothesis, H₀: ₂ = 0 states that:

Whenever the dependent variable takes on just a few values it is close to a normal distribution.

If the calculated value of the t statistic is greater than the critical value, the null hypothesis, H₀ is rejected in favor of the alternative hypothesis, H₁.

The normality assumption implies that:

H₁: âj 0, where â_j is a regression coefficient associated with an explanatory variable, represents a one-sided alternative hypothesis.

Standard errors must always be positive.

In regression analysis, the standard errors should not always be included along with the estimated coefficients.

Which of the following is a statistic that can be used to test hypotheses about a single population parameter?

The Nature of Econometrics and Economic Data

The Simple Regression Model

Multiple Regression Analysis: Estimation

Multiple Regression Analysis: Ols Asymptotics

Multiple Regression Analysis: Further Issues

Multiple Regression Analysis With Qualitative Information: Binary or Dummy Variables

Heteroskedasticity

More on Specification and Data Problems

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Series 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 Stage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Corrections

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

Exam 4: Multiple Regression Analysis: Inference

Which of the following statements is true of hypothesis testing?

Which of the following statements is true of confidence intervals?

The significance level of a test is:

A normal variable is standardized by:

Which of the following correctly defines F statistic if SSRr represents sum of squared residuals from the restricted model of hypothesis testing, SSRur represents sum of squared residuals of the unrestricted model, and q is the number of restrictions placed?

Which of the following tools is used to test multiple linear restrictions?

The general t statistic can be written as:

Which of the following statements is true?

Which of the following statements is true?

If R2ur = 0.6873, R2r = 0.5377, number of restrictions = 3, and n - k - 1 = 229, F statistic equals:

The ordinary least square estimators have the smallest variance among all the unbiased estimators.​

Which of the following is true of confidence intervals?

Consider the equation, y = + 1x1 + 2x2 + u. A null hypothesis, H0: 2 = 0 states that:

Whenever the dependent variable takes on just a few values it is close to a normal distribution.

If the calculated value of the t statistic is greater than the critical value, the null hypothesis, H0 is rejected in favor of the alternative hypothesis, H1.

The normality assumption implies that:

H1: âj 0, where âj is a regression coefficient associated with an explanatory variable, represents a one-sided alternative hypothesis.

Standard errors must always be positive.

In regression analysis, the standard errors should not always be included along with the estimated coefficients. ​

Which of the following is a statistic that can be used to test hypotheses about a single population parameter?

The Nature of Econometrics and Economic Data

The Simple Regression Model

Multiple Regression Analysis: Estimation

Multiple Regression Analysis: Ols Asymptotics

Multiple Regression Analysis: Further Issues

Multiple Regression Analysis With Qualitative Information: Binary or Dummy Variables

Heteroskedasticity

More on Specification and Data Problems

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Series 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 Stage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Corrections

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

If R²ur = 0.6873, R²r = 0.5377, number of restrictions = 3, and n - k - 1 = 229, F statistic equals:

The ordinary least square estimators have the smallest variance among all the unbiased estimators.

Consider the equation, y = + ₁x₁ ₊ ₂x₂ + u. A null hypothesis, H₀: ₂ = 0 states that:

If the calculated value of the t statistic is greater than the critical value, the null hypothesis, H₀ is rejected in favor of the alternative hypothesis, H₁.

H₁: âj 0, where â_j is a regression coefficient associated with an explanatory variable, represents a one-sided alternative hypothesis.

In regression analysis, the standard errors should not always be included along with the estimated coefficients.