Tien Chung Cam

Dashboard  AE_S1(2020-2021)DH44ISB-6  Exam  Midterm

Question 1 Which of the following correctly identifies a limitation of logarithmic transformation of

Not yet answered variables?

Marked out of 1.0

Select one:
a.
Taking log of variables make OLS estimates more sensitive to extreme values in comparison
to variables taken in level.

b.
Logarithmic transformations cannot be used if a variable takes on zero or negative values.

c.
Logarithmic transformations of variables are likely to lead to heteroskedasticity.

d.
Taking log of a variable often expands its range which can cause inefficient estimates.

2 2
Question 2 Which of the following correctly identifies an advantage of using adjusted R over R ?
Not yet answered
Select one:
Marked out of 1.0
a.
2 2
Adjusted R corrects the bias in R .

b.
2 2
Adjusted R is easier to calculate than R .

c.
2
The penalty of adding new independent variables is better understood through adjusted R
2
than R .

d.
2 2
The adjusted R can be calculated for models having logarithmic functions while R cannot
be calculated for such models.

/
Question 3 Which of the following statements is true of hypothesis testing?
Not yet answered
Select one:
Marked out of 1.0
a.
The t test can be used to test multiple linear restrictions.

b.
A test of single restriction is also referred to as a joint hypotheses test.

c.
A restricted model will always have fewer parameters than its unrestricted model.

d.
OLS estimates maximize the sum of squared residuals.

Question 4 The key assumption for the general multiple regression model is that all factors in the
Not yet answered unobserved error term be correlated with the explanatory variables.

Marked out of 1.0

Select one:
True
False

Question 5 The term ‘u' in an econometric model is usually referred to as the _____.
Not yet answered
Select one:
Marked out of 1.0
a.
error term

b.
parameter

c.
hypothesis

d.
dependent variable

/
Question 6 Changing the unit of measurement of any independent variable, where log of the dependent
Not yet answered variable appears in the regression:

Marked out of 1.0

Select one:
a.
affects only the intercept coefficient.

b.
affects only the slope coefficient.

c.
affects both the slope and intercept coefficients.

d.
affects neither the slope nor the intercept coefficient.

Question 7 The sample correlation between xi and yi is denoted by _____.

Not yet answered
Select one:
Marked out of 1.0
a.

b.

c.

d.

/
Question 8 A data set that consists of a sample of individuals, households, firms, cities, states, countries, or
Not yet answered a variety of other units, taken at a given point in time, is called a(n) _____.

Marked out of 1.0

Select one:
a.
cross-sectional data set

b.
longitudinal data set

c.
time series data set

d.
experimental data set

Question 9 If xi and yi are positively correlated in the sample then the estimated slope is _____.
Not yet answered
Select one:
Marked out of 1.0
a.
less than zero

b.
greater than zero

c.
equal to zero

d.
equal to one

/
Question 10 Which of the following is true of confidence intervals?
Not yet answered
Select one:
Marked out of 1.0
a.
Two quantities and c are required to construct the confidence intervals.

b.
To obtain the value c in the confidence interval, only the degrees of freedom need to be
known.

c.
Confidence intervals are also called interval estimates.

d.
A constructed confidence intervals will always contain the population parameter .

International School of Business

Support contact
17 Pham Ngoc Thach St. Ward 6, District 3, Ho Chi Minh City
 Phone: (028) 5446 5555
 E-mail: Info@isb.edu.vn

Copyright © 2016 - International School of Business.Powered by Moodle