Question 1

If a change in variable x causes a change in variable y, variable x is called the _____.

Accepted Answer

A) dependent variable 
B) explained variable 
C) explanatory variable 
D) response variable

Question 2

Which of the following is an example of a dummy variable?

Accepted Answer

A) A person's hourly wage 
B) The number of years of education someone has 
C) The number of years of work experience someone has 
D) Whether or not someone has a college degree

Question 3

The explained sum of squares for the regression function,  , is defined as _____.

Accepted Answer

A)   
B)   
C)   
D)

Question 4

What does the equation  denote if the regression equation is  ?

Accepted Answer

A) The explained sum of squares 
B) The total sum of squares 
C) The sample regression function 
D) The population regression function

Question 5

The sample covariance between the regressors and the Ordinary Least Square (OLS) residuals is always positive.

Accepted Answer

A) True 
 B)False

Question 6

In the equation  , what is the estimated value of  ?

Accepted Answer

A)   
B)   
C)   
D)

Question 7

In the equation  , c denotes consumption and i denotes income. What is the residual for the 5th observation if  =$500 and  =$475?

Accepted Answer

A) $975 
B) $300 
C) $25 
D) $50

Question 8

Consider the following regression model: y =  0 +  1x1 + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?

Accepted Answer

A) The sum, and therefore the sample average of the OLS residuals, is positive. 
B) The sum of the OLS residuals is negative. 
C) The sample covariance between the regressors and the OLS residuals is positive. 
D) The point (  ) always lies on the OLS regression line.

Question 9

The sample correlation between xi and yi is denoted by _____.​

Accepted Answer

A) ​  
B) ​  
C) ​  
D) ​

Question 10

Consider a simple linear regression model, y = β0+ β1x + u, . What does the zero conditional mean assumption imply?

Accepted Answer

A) The expected value of the error term, u , is zero, regardless of what the value of the explanatory variable, x, is. 
B) The estimated average value of β1 is zero. 
C) The expected value of the explained variable, y , is zero, regardless of what the value of the explanatory variable, x , is. 
D) The estimated average value of β0 is zero.

Exam 2: The Simple Regression Model

If a change in variable x causes a change in variable y, variable x is called the _____.

Which of the following is an example of a dummy variable?

The explained sum of squares for the regression function, , is defined as _____.

What does the equation denote if the regression equation is ?

The sample covariance between the regressors and the Ordinary Least Square (OLS) residuals is always positive.

In the equation , what is the estimated value of ?

In the equation , c denotes consumption and i denotes income. What is the residual for the 5^th observation if =$500 and =$475?

Consider the following regression model: y = ₀ + ₁x₁ + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?

The sample correlation between xi and yi is denoted by _____.

Consider a simple linear regression model, y = β₀+ β₁x + u, . What does the zero conditional mean assumption imply?

Exam 2: The Simple Regression Model

If a change in variable x causes a change in variable y, variable x is called the _____.

Which of the following is an example of a dummy variable?

The explained sum of squares for the regression function, , is defined as _____.

What does the equation denote if the regression equation is ?

The sample covariance between the regressors and the Ordinary Least Square (OLS) residuals is always positive.

In the equation , what is the estimated value of ?

In the equation , c denotes consumption and i denotes income. What is the residual for the 5th observation if =$500 and =$475?

Consider the following regression model: y = 0 + 1x1 + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?

The sample correlation between xi and yi is denoted by _____.​

Consider a simple linear regression model, y = β0+ β1x + u, . What does the zero conditional mean assumption imply?

In the equation , c denotes consumption and i denotes income. What is the residual for the 5^th observation if =$500 and =$475?

Consider the following regression model: y = ₀ + ₁x₁ + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?

The sample correlation between xi and yi is denoted by _____.

Consider a simple linear regression model, y = β₀+ β₁x + u, . What does the zero conditional mean assumption imply?