econometrics Pearson quiz questions

in the simple linear regression model, the regression slope:

a when multiplied with the explanatory variable will give you the predicted Y

b indicates by how many units Y increases, given a one unit increase in X

c represents the elasticity of Y on X

d indicates by how many percent Y increases, given a one percent increase in X

b

the ols residuals are sample counterparts of the population

a regression functions predicted values

b regression function intercept

c errors

d regression function slope

c

to decide whether the slope coefficient indicates a large effect of X on Y, you look at the:

a size of the slope coefficient

b value of the intercept

c regression r squared

d economics importance implied by the slope coefficient

dt

in the simple linear regression mode yi=b0+b1xi+ui

a the absolute value of the slope is typically between 0 and 1

b the intercept is typically small and unimportant

c b0+b1xi represents the population regression function

d b0+b1xi represents the sample regression function

c

assume that you have collected a sample of observations from over 100 households and their consumption and income patterns. usin these observations, you estimate the followin regression ci=b0+b1yi+ui, where c is consumption and y is disposable income

the estimate of b1 will tell you

a the amount you need to consume to survive

b change in income/change in predicted income

c predicted consumption/income

d change in predicted consumption/change in income

d

A binary variable is often called​ a:

A. dependent variable.

B. residual.

C. dummy variable.

D. power of a test.

c

You extract approximately​ 5,000 observations from the Current Population Survey​ (CPS) and estimate the following regression​ function:

AHE=3.32(1.00)-0.45(0.04)xAge squared, R squared=0.02

where AHE is average hourly​ earnings, and Age is the​ individual's age.

Given the​ specification, your​ 95% confidence interval for the effect of changing age by 5 years is​ approximately:

A. ​[$1.86, $2.64].

B. [$1.35, $5.30].

C. [$2.32, $4.32].

D. Cannot be determined given the information provided.

a

Imagine that you were told that the t​-statisti for the slope coefficient of the regression line

Test Score=698.9-2.28xSTR was 4.38.

What are the units of measurement for the t​-statistic?

A. Number of students per teacher.

B. Standard deviations.

C. test score/str

D. Points of the test score.

b

Using the textbook example of 420 California school districts and the regression of test scores on the​ student-teacher ratio, you find that the standard error on the slope coefficient is 0.51 when using the​ heteroskedasticity-robust formula, while it is 0.48 when employing the​ homoskedasticity-only formula.

When calculating the t​-statistic, the recommended procedure is​ to:

A. use the​ heteroskedasticity-robust formula.

B. make a decision depending on how much different the estimate of the slope is under the two procedures.

C. use the​ homoskedasticity-only formula because the t​-statistic becomes larger.

D. first test for homoskedasticity of the errors and then make a decision.

a

You have collected data for the 50 U.S. states and estimated the following relationship between the change in the unemployment rate from the previous year (△ur) and the growth rate of the respective state real GDP (gygy)

The results are as​ follows:

△ur=2.81−0.23×gy, R2=0.36, SER=0.78

Assuming that the estimator has a normal​ distribution, the​ 95% confidence interval for the slope is approximately the​ interval:

A. ​[minus−​0.33, minus−​0.13].

B. ​[minus−​0.31, minus−​0.15].

C. [2.57, 3.05].

D. [minus−​0.31, 0.15].

b