econometrics on tap

Regression analysis is to:

• A. Study the correlation relationship among variables

• B. Study the causational relationship among variables

• C. Study the dependant relationship among variables

The simple regression model reflects:

• A. The dependence of variable Y on one variable X

• B. The dependence of variable Y on tvo variable X
  

• C. The dependence of variable Y on more than than rwo variable N

3. The reasons for the existence of error term in the population regression funcion are:

• A. The researchers know all the factors affecting the dependent variables
  

• B. The researchers cannot have data for all the variables
  

• C. The researchers can have data for all variables

4. OLS estimators satisfy the fallowing conditions:

• A. R2 smallest
  

• B. SSR smallest
  

• C. SSE smallest

5. Unbiasedness of the OLS estimated coefficients means:

• A. The expected value of the OLS estimated coefficient equal its real value

• B. The expected value of the OLS estimated coefficient is larger than its real value

• C. The expected value of the OLS estimated coefficient is smaller than its real value

6. The variance of estimators is getting smaller when:

• A. The sample size is small
  

• B. The sample size is big
  

• C. The correlations between independent variables are big

7. How does the sample size affect the efficiency/exactness of an estimation?

• A. The larger the sample, the more exact the estimation

• B. The smaller the sample, the more exact the estimation

• C. The sample size has no effect on the the elliefency/expetness of an estimation

8. Using White test detect heteroskedasticity, calculated Chi-square(2) = 1.624 with p – value = 0.444, with 5% significance level, the conclusion is:

• A. Heteroskedasticity.
  

• B. No conclusion yet

• C. No heteroskedasticity

9. The assumption about homoskedasticity means:

• A. The conditional variance of error term is un constant

• B. The variance of error term is constant
  

• C. The conditional variance of error term is constant
  

• D. The variance of error term is unconstant

10. The assumption about normality of u means:

• A. The error term has normal distribution

• B. The residual has normal distribution
  

• C. The residual has standard normal distribution

• D. The error term has standard normal distribution