Chapter 11: Limited Dependent Variables and Time-Series Data

Which of the following is an accurate statement about multicollinearity?

Multicollinearity leads to inflated standard errors

Which of the following is another accurate statement about multicollinearity?

The problems of multicollinearity can be overcome by increasing the sample size. and Multicollinearity cannot occur in a bivariate regression model

Which of the following is an accurate statement about influential observations in a multivariate OLS model?

NOT For a single case to have a large influence, it must have an unusual value for at least one independent variable. or

Influential cases do not impact a model's R2 statistic

In the example of identifying influential cases from the Florida 2000 U.S. presidential election, which of the following is true?

Palm Beach County was a highly influential observation.

According to Chapter 11 of Kellstedt and Whitten, what should you do when you encounter influential observations in an OLS model?

Report that you have such cases.

Know that you have such cases.

Estimate a model with a dummy variable identifying such cases.

For the next two questions, consider the following scenario: Bud wants to study the impact of religious identification on interest in politics. He has survey data that provide a measure of interest in politics that he is willing to treat as a continuous variable. For his independent variable, he has a 3 category measure of religious identification that divides respondents into the following categories: "not religious," "Christian," and "some other religion."

What does Bud need to be careful about as he sets up an OLS regression model to test his theory that religious identification affects interest in politics?

Group of answer choices

Bud needs to watch out for the dummy trap

For the next two questions, consider the following scenario: Bud wants to study the impact of religious identification on interest in politics. He has survey data that provide a measure of interest in politics that he is willing to treat as a continuous variable. For his independent variable, he has a 3 category measure of religious identification that divides respondents into the following categories: "not religious," "Christian," and "some other religion."

How many hypothesis tests would Bud have to conduct in order to fully evaluate his theory that religious identification affects interest in politics?

Three

For the next two questions, consider the following scenario: Anna is interested in studying the impact of different characteristics of challengers on their success in elections against incumbent candidates. She operationalizes her main independent variable "challenger quality" with three different independent dummy variables: a measure of whether the challenger has previously held elected office, a measure of whether the challenger graduated from college, and a measure of whether the challenger has received the endorsement of the national party. As a control variable, she also has a measure of how much money the challenger spent in the election campaign. Her dependent variable (Yi) is Challenger Vote Percentage. Her model is thus:

Y i = α + β 1 Office i + β 2 College i + β 3 Endorsement i + β 4 Spending i + u i

For a challenger candidate who had previously held elected office and had graduated college but did not receive the national party's endorsement, which of the following would be the correct formula for the model's prediction?

Yi=a+B1Officei+B2Collegei+B4Spendingi+ui

For the next two questions, consider the following scenario: Anna is interested in studying the impact of different characteristics of challengers on their success in elections against incumbent candidates. She operationalizes her main independent variable "challenger quality" with three different independent dummy variables: a measure of whether the challenger has previously held elected office, a measure of whether the challenger graduated from college, and a measure of whether the challenger has received the endorsement of the national party. As a control variable, she also has a measure of how much money the challenger spent in the election campaign. Her dependent variable (Yi) is Challenger Vote Percentage. Her model is thus:

Y i = α + β 1 Office i + β 2 College i + β 3 Endorsement i + β 4 Spending i + u i

What does Anna need to be careful about as she interprets her model?

She needs needs to watch out for multicollinearity

According to Chapter 11 of Kellstedt and Whitten, which of the following is true about the term "micronumerosity?"

It underscores the notion of multicollinearity as a data problem.

Which of the following is true about detecting multicollinearity?

High bivariate correlations between our independent variables tend to lead to multicollinearity.

If we have a high R2 statistic, but none or very few statistically significant parameter estimates, we should be suspicious of multicollinearity.

The variance inflation factor is a formal measure for diagnosing multicollinearity.