When is a Tobit model used?
a.) when you have censored data
b.) for categorical data with a normally distributed error term
c.) when you want to combine a probit and multinomial logit
d.) to estimate varying marginal effects in a binary choice model
How should in the general multiple regression model be interpreted?
a.) The number of units of change in the expected value of y for a 1 unit increase in xk
when all remaining variables are unchanged
b.) the magnitude by which xk varies in the model
c.) the amount of variation in y explained by xk in the model
d.) the number of variables used in the model.
For what dependent variable should a Poisson regression model be considered?
a.) satisfaction with job
b.) GPA (grade point average)
c.) number of mobile phones owned by a household
d.) level of education completed
Which of the following is an example of an autoregressive distributed lag model?
a.) yt = f(xt, xt-1, xt-2‘¦’¦.)
b.) yt = f(yt-1, xt, xt-1, xt-2‘¦)
c.) yt = f(xt, x2
t, x3
t)
d.) yt = f(xt) + g(et-1)
You estimate a simple linear regression model using a sample of 62 observations and
obtain the following results (estimated standard errors in parentheses below coefficient
estimates):
y = 97.25 + 33.74* x
(3.86) (9.42)
You want to test the following hypothesis: H0: = 12, H1: 12. If you choose to
reject the null hypothesis based on these results, what is the probability you have
committed a Type II error?
a.) between .05 and .10
b.) between .01 and .025
c.) between .02 and .05
d.) It is impossible to determine without knowing the true value of b2
Consider the following model:
Qd = f(P, P , Pc, INC)
where Qd is quantity demanded of a particular product per month, P is the price of the
product, P is the price of substitutes, Pcis the price of complements, and INC is monthly
income.
This equation represents
a.) a non-linear model
b.) an economic model
c.) an econometric model
d.) a challenge to the law of demand.
What does it mean for a variable to be endogenous?
a.) it is determined within the system or model
b.) it is measured after all other variables are observed
c.) it is determined outside the system or model
d.) it is measured before all other variables are observed
If, for estimator it is true that p then is
a.) efficient
b.) consistent
c.) accurate
d.) independent
If your computer printout includes an F-statistic and p-value for the overall model, how
should you interpret the p-value?
a.) the probability that all of the coefficients are actually equal to zero
b.) the probability that all of the coefficients other than the intercept are actually zero
and we would observe the estimated results
c.) the probability that the model is completely invalid
d.) the probability that the model is incorrectly specified
What does VAR abbreviate?
a.) variance auto reduction
b.) vector autoregressive
c.) variance active regression
d.) vector alpha reduction
If the assumption E(e) = 0 and cov(x,e) = 0 holds, what are the implications of least
squares estimators?
a.) still BLUE for all sample sizes
b.) consistent and normally distributed in very large sample sizes
c.) unbiased, but not BLUE for small samples
d.) inconsistent and parameter estimates do not converge to true values regardless of
sample size.
What should you conclude if you get an F-statistic of 8.3 when testing the strength of an
instrument?
a.) it depends on the degrees of freedom and critical value of F
b.) do not reject H0; conclude that the instrument is weak and should not be used in
2SLS.
c.) reject H0; conclude the instrument is strong and proceed with 2SLS
d.) do not reject H0; conclude the instrument is strong and use it in 2SLS
The LM (Lagrange Multiplier) test generates a test statistic N * R2 ~ 2
(S-1). Where is
the R2 in the test statistic measured?
a.) the original econometric model when estimated using the White correction technique
b.) the average from all the auxiliary regressions estimated with each explanatory
variable as a function of the other explanatory variables
c.) the original econometric model before any test of heteroskedasticity has been
performed
d.) the auxiliary regression of residuals as a function of the explanatory variables
generating the heteroskedasticity
Which of the following terms is NOT commonly used to refer to an indicator variable?
a.) dummy
b.) binary
c.) dichotomous
d.) digital