ECONOMETRICS

MCQs

Aiman Israr
12-BBA-062

1.

Is the quantitative analysis of actual economic phenomena based on the

concurrent development of theory and observation, related by appropriate methods of
inference.

a)
b)
c)
d)

Research
Chow test
Econometrics
NOT
2.
is a type data collected by observing many subjects (such as
individuals, firms, countries, or regions) at the same point of time, or without regard to
differences in time.
a)
b)
c)
d)

Pooled data
Cross section
Time Series
AOT

3. Degrees of freedom is the number of values in the final calculation of a statistic that
are not free to vary.
a) True
b) False
4. Which of the following tests is used to detect heteroskedasticity.
a)
b)
c)
d)

White Test
Glajser Test
Gold feld Quandt
AOT

5. Multicollinearity is the situation in which independent terms are dependent

on each other.
a) True
b) False

6. If the value of R2 is 0.5. Calculate Variance Inflation factor.

a)
b)
c)
d)

2
3
4
1

7. Solution of Autocorrelation includes.

a) Itration Method
b) Durbin Watson

c) White test
d) AOT

8. When the independent term is dependent on some error term. This

situation occurs because of.
a)
b)
c)
d)

Autocorrelation
Hetroskedasticity
Endogenity
Multicolinearity

9. A variable is
to a model if it is not determined by other
parameters and variables in the model, but is set externally and any
changes to it come from external forces.
a)
b)
c)
d)

Exogenous
Endogenous
Dependent
independent

10.The Chow test is a statistical and econometric test of whether the

coefficients in two linear regressions on different data sets are equal.
a)
b)
c)
d)

Key
1. C
2. B
3. B

Chow test
Durbin H Test
Grid Search Method
White Test

4. D
5. A
6. A
7. A
8. C
9. A
10. A