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SIMPLE REGRESSION QUIZ

1.

The regression model includes a random error or
disturbance term for a variety of reasons. Which of
the following is NOT one of them? (1 pt)
a. measurement errors in the observed variables
b. omitted influences on Y (other than X)
c. linear functional form is only an approximation
d. the observable variables do not exactly
correspond with their theoretical counterparts
e. there may be approximation errors in the
calculation of the least squares estimates

2.

Which of the following assumptions about the error
term is not part of the so called "classical
assumptions"? (1 pt)
a. it has a mean of zero
b. it has a constant variance
c. its value for any observation is independent of its

the regression line minimises the sum of the squared residuals 4. the elasticity of Y with respect to X . the mean of the fitted values of Y is the same as the observed values of Y d. the sum of the residuals is always zero c. there are always as many points above the fitted line as there are below it e.value for any other observation d. the point Xbar. it is independent of the value of X e. In a simple linear regression model the slope coefficient measures (1 pt) a. Which of the following is NOT true? (1 pt) a. Ybar always lies on the regression line b. it has a normal distribution 3.

the change in Y which the model predicts for a unit change in X c. Changing the units of measurement of the Y variable will affect all but which one of the following? (1 pt) a. What is the value of the residual at the point . R squared for the regression e. the Total Sum of Squares for the regression d. A fitted regression equation is given by Yhat = 20 + 0. the estimated slope parameter c.b. the estimated standard errors 6. the ratio Y/X e. the value of Y for any given value of X 5.75X. the estimated intercept parameter b. the change in X which the model predicts for a unit change in Y d.

Y=90? (1 pt) a. -5 c. 20 b. the amount of variation in Y . 18 d. 22 c.X=100. 5 b. 15 e. 2 8. -5 7. What is the number of degrees of freedom for a simple bivariate linear regression with 20 observations? (1 pt) a. R squared measures (1 pt) a. 0 d. the correlation between X and Y b.

the explained sum of squares as a proportion of the Total Sum of Squares 9. when you are testing a hypothesis other than that . when the etsimated coefficient has the opposite sign to that predicted by theory e. when the sample size is large enough to use the normal approximation to the t distribution d. when the estimated coefficient has the sign predicted by theory b. when you wish to use a larger significance level than 5% c. the residual sum of squares as a proportion of the Total Sum of Squares e. One tailed tests are sometimes used to test hypotheses about regression coefficients.c. In which of the following circumstances? (1 pt) a. the covariance between X and Y d.

if repeated samples of the same size are taken. the estimated slope coefficient will get closer to the true parameter value as the size of the sample increases c.the parameter equals zero 10. on average their value will be equal to the true parameter . the estimated slope coefficient will be equal to the true parameter if the sample is large d. the estimated slope coefficient will always be equal to the true parameter value b. the mean of the sampling distribution of the slope parameter is zero e. The least squares etimator of the slope coeficient is unbiased means (1 pt) a.