The critical value for a given p-value in the F-distribution depends on the degrees of
freedom in the numerator and denominator. How do you find the degrees of freedom in
the numerator?
a.) It is the number of observations minus the number of coefficients estimated (N-K)
b.) It is the number of hypotheses being tested simultaneously (J)
c.) It is the number of coefficients being estimated (K)
d.) It is the number of observations minus the number of hypotheses tested (N-J)
In an economic model that uses incometo predict monthly expenditures on
entertainment, what is the dependent variable?
a.) income
b.) monthly expenditures on entertainment
c.) income elasticity
d.) demand for entertainment
You have estimated the following simple regression model
y = 379 + 1.44 x3
What does this model predict y to be when x = 8.49?
a.) 415.68
b.) 690.39
c.) 1260.22
d.) 2205.47
What are the consequences of ignoring or failing to recognize serial correlation?
a.) biased, but consistent
b.) unbiased, but no longer BLUE
c.) unbiased, but no longer linear
d.) biased, but with minimum variance
) In which case would testing the null hypothesis involve a two-tailed statistical test?
a.) H1: Incentive pay for teachers does affect student achievement
b.) H1: Higher sales tax rates does not reduce state tax revenues
c.) H1: Extending the duration of unemployment benefits does not increase the length of
joblessness
d.) H1: Smoking does not reduce life expectancy
What statistical test allows joint hypotheses to be tested?
a.) Breusch-Pagan Test
b.) t-test
c.) Gauss-Markov
d.) F-test
If you are estimating
y = 1 + 2x + e
and realize x and y are both random variables, what condition must be true for simple
regression estimators to be BLUE?
a.) the data have been collected via random sampling
b.) the data are time series data
c.) e is normally distributed
d.) x is normally distributed
Why should good non-sample information be incorporated into an econometric model
via restricted least squares?
a.) it reduces the variance of estimated coefficients without introducing bias
b.) it allows more precise hypotheses testing to be done
c.) it reduces the degrees of freedom in the denominator of an F-test
d.) It reduces the probability of rejecting a true null hypothesis
For a random effects model the least squares estimator is unbiased and consistent. The
errors can be corrected for potential heterogeneity using _________________, but the
estimator with minimum variance is _______________.
a.) cluster-robust standard errors, GLS
b.) White’s correction, ML
c.) 2SLS, fixed effects
d.) cluster-robust standard errors, pooled
Which of the following is not an assumption of the multiple regression model?
a.) The values of each xik are not random and are not exact linear functions of the other
explanatory variables.
b.) var(yi.) = var(ei) =
c.) The least squares estimators are BLUE.
d.) cov(yi, yj) = cov(ei, ej) = 0; (i≠j)
What is the unbiased estimator of in the multiple regression model?
a.)
b.)
c.)
d.)
Economic theory provides a basis for which variables are relevant and should be
included in an econometric model. But econometrics provides tools to estimate
____________________ which tells us ________________________________.
a.) a model, the functional form that should be used.
b.) causality, why it happens that way
c.) a parameter, how much or to what degree things change.
d.) variables, the probability of a specific outcome.
Estimating treatment effects using difference-in-differences requires what kind of data?
a.) aggregate measures over time
b.) time-series data spanning the treatment length
c.) paired, panel data
d.) cross-section spanning the treated population
You have estimated a multiple regression model with 6 explanatory variables and an
intercept from a sample with 46 observations. What is tc if you want to perform a
right-tailed hypothesis test at the .01 level of significance?
a.) 2.426
b.) 2.708
c.) 2.423
d.) 2.704
Why should augmented Dickey-Fuller tests always be used when performing
econometric analysis?
a.) the augmented tests allow for more degrees of freedom
b.) so we can test hypotheses using a t-distribution
c.) since no assumptions about the sign of are needed to perform a one-tailed test
d.) to confirm that error terms are not autocorrelated
If you have a times series data set with 100 years worth of data that you use to estimate
a distributed lag model of order 3, how many degrees of freedom will you have for
hypothesis testing on estimated coefficients?
a.) 93
b.) 95
c.) 99
d.) 100
What is the null hypothesis of the Dickey-Fuller Test 2?
a.) the series is non-stationary over time
b.) the series is stationary
c.) the series is first order integrated
d.) the series are cointegrated