(See graphs of Model A – D) The scatterplots show the estimated residuals plotted
against predicted values of the dependent variable. Which model is LEAST likely to
have violated the assumption var(yi) = var(ei) = 2?
a.) Model A
b.) Model B
c.) Model C
d.) Model D
If you are performing a left-tailed significance test and find the area to the left of |tc| is .
99, what is the p-value?
a.) .01
b.) .99
c.) .02
d.) .05
When a substantial proportion of the observations for a dependent variable take on a
limiting value, such as zero, the data are said to be
a.) truncated
b.) qualitative
c.) categorical
d.) censored
The following model has been estimated using a dataset with 4854 observations.
Calculate the F-statistic to test H0: 2= 3=- 4= 5= 0
a.) 430.35
b.) .2620
c.) 76.80
d.) 2.8169
Which of the following is not a valid criterion for choosing and q in an ARDL model?
a.) fewest number of lags that eliminates serial correlation
b.) statistical significance of coefficient estimates
c.) minimization of AIC and SC
d.) maximization of R2
Which of the following is an example of a 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)
What does it mean for a model to be GARCH-in-mean?
a.) the mean and variance both move over time but are independent
b.) the mean is constant but variance changes over time
c.) the mean increases while variance is constant
d.) the mean increases with the variance
When compared to a normal distribution, what does it mean for a distribution to be
leptokuric?
a.) flatter around the mean and fatter tails
b.) more peaked around mean and fatter tails
c.) more peaked around mean and larger variance
d.) flatter around mean and larger variance
When you have a multiple regression model with a binary dependent variable it is a
__________.
a.) dichotomous model
b.) Bernoulli model
c.) Linear Probability model
d.) prediction model
What is the primary difference between ordered probit and ordered logit?
a.) ordered logit requires assumption of independence of irrelevant alternatives, ordered
probit does not
b.) they make different assumptions about the distribution of coefficient estimates
c.) ordered logit allows variables to vary by choice, ordered probit does not
d.) they make different assumptions about the distribution of the error term
A model estimated using a dataset with 65 observations generates the following results.
If you want to test the hypothesis that b3 =0.45, what is the test statistic from this
sample?
a.) 41.139
b.)10.067
c.)31.072
d.)0.000
If you reject the null hypothesis when performing a RESET test, what should you
conclude?
a.) at least one of the original coefficients is not equal to zero
b.) the original model is incorrectly specified and can be improved upon
c.) relevant variable are omitted and the coefficient estimates of included variables are
biased
d.) an incorrect functional form was used
What is a spurious regression?
a.) statistically significant but meaningless results generated by regression analysis of
non-stationary data
b.) the results generated by regression analysis of a station variable dependent on a
non-stationary series
c.) regression analysis where endogenous and exogenous variables are reversed
d.) regression analysis that is impossible due to lack of identification
The following economic model predicts whether a voter will vote for an incumbent
school board member INCUMBENT = 1 + 2MALE + 3PARTY + 4MARRIED +
5KIDS
where
INCUMBENT = 1 if the voter votes for them, 0 otherwise.
MALE = 1 if the voter is a male.
PARTY indicates the voter is registered with the same political party as the incumbent.
MARRIED = 1 for married voters, 0 otherwise.
KIDS is the number of school age kids living in the voter’s house. If you believe
marriage affects male and female voters differently, which variable should you add to
the economic model to allow you to test the hypothesis?
a.) MALE * PARTY
b.) MALE * MARRIED
c.) MARRIED * KIDS
d.) MARRIED * PARTY
How do you interpret the estimated value of in the following model?
a.) the slope of the line representing the relationship between y and x
b) the elasticity of y with respect to x
c.) cannot be determined without more information
d.) the mean value of ln(y) when ln(x) = 0.
Of the following steps in conducting empirical economic research, which one should be
performed last?
a.) find appropriate data that can be used for estimation
b.) build an economic model guided by economic theory
c.) evaluate and analyze the consequences and implications of the results
d.) estimate parameters and test hypotheses
The matrix below represents the variance-covariance matrix estimated from the
multiple regression model:
Which 2 elements of the matrix should always be equal?
a.) A & I
b.) B & H
c.) C & G
d.) D & F