What does R2, the coefficient of determination, measure?
a.) the probability of the true value falling within the forecast interval
b.) the p-value on the coefficient we are using to test our hypothesis of interest
c.) the confidence interval of the error terms as determined by the coefficients
d.) the proportion of the variation in y explained by x within the regression model
The F(1,218) distribution is equivalent to what distribution?
a.) N (1,218)
b.) F(2, 114)
c.) t(218)
d.) 2
(2,114)
Which of the following is NOT true of Newey-West standard errors?
a.) allows valid inference despite the presence of serial correlation
b.) does not require knowledge of structure of serial correlation
c.) valid when estimated using stationary data
d.) always produce smaller standard error estimates, which makes them the BLUE
estimator
Which of the following is not a necessary condition for a variable to be stationary?
a.) E(yt) =
b.) var(yt) = 2
c.) cov(yt, yt+s) = cov(yt, yt-s) =
d.) E(yt ‘“ yt-1) =
When using the LM test for serial correlation, what is the null hypothesis?
a.) it depends on the model specification
b.) no serial correlation is present
c.) statistically significant serial correlation with the first lag
d.) statistically significant serial correlation with unspecified lag
Which model requires the assumption of independence of irrelevant alternatives?
a.) conditional logit
b.) nested logit
c.) multinomial probit
d.) mixed logit
You have estimated the following equation using OLS:
where y is annual income in thousands and MALE is an indicator variable such that it is
1 for males and 0 for females. According to this model, what is the average income for
males? a.) $33,750
b.) $35,200
c.) $32,300
d.) cannot be determined
Which of the following is not an estimation technique utilizing panel data?
a. ) a pooled model
b.) fixed effects
c.) random effects
d.) probit
What is the difference between count data and ordered data?
a.) there is no difference, they are two names for the same thing
b.) in count data the dependent variable is an integer that represent a measurement, in
ordered data it represents a rank
c.) ordered data can be continuous while count data are discrete
d.) count data indicate ranking while ordered data are categorical
Which of the following statements is true regarding var when estimated by IV using z
as an instrument for x?
a.) instrumental variable estimation leads to larger variance of estimates compared to
OLS
b.) instrumental variable estimation leads to smaller variance estimates compared to
OLS
c.) the variance of the IV estimates can be larger or smaller than OLS, depending on
r2
xz
d.) there is no way to know which estimator leads to estimates with a larger variance, it
depends on the data
Which of these assumptions means the errors are uncorrelated with all x‘s?
a.) E(eit) = 0
b.) var(eit) = E(e2
it) = 2
c.) cov(eit, ejs) = E(eit, ejs) = 0 for i j or t s
d.) cov(eit, x2it) = 0, cov(eit, x3it)
How do you calculate the total multiplier for a finite distributed lag model where q is
the number of lags?
a.) q
b.)
c.)
d.) q–0