11/11/23, 11:11 PM Review Test Submission: Online quiz 7 (Chapter 8) – ...

Hai Nhu Thai 161

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ECON3006 (Vietnam Session 3 2023) Economic and Financial Modelling

Assessment 3 (10%) - Online Quizzes Review Test Submission: Online quiz 7 (Chapter 8)

Review Test Submission: Online quiz 7 (Chapter 8)

User Hai Nhu Thai

Subject ECON3006 (Vietnam Session 3 2023) Economic and Financial Modelling
Test Online quiz 7 (Chapter 8)
Started 12/11/23 2:57 AM
Submitted 12/11/23 3:11 AM
Due Date 13/11/23 3:59 AM
Status Completed
Attempt Score 10 out of 10 points
Time Elapsed 14 minutes out of 20 minutes
Results All Answers, Submitted Answers, Correct Answers, Incorrectly Answered
Displayed Questions

Question 1 1 out of 1 points

Consider the following regression equation:

In which of the following cases, the dependent variable is binary?

Selected Answer: y indicates whether an adult is a college dropout

Answers: y indicates the gross domestic product of a country

y indicates whether an adult is a college dropout

y indicates household consumption expenditure

y indicates the number of children in a family

Question 2 1 out of 1 points

The income of an individual in Budopia depends on his ethnicity and several

other factors which can be measured quantitatively. If there are 5 ethnic groups in
Budopia, how many dummy variables should be included in the regression
equation for income determination in Budopia?

Selected Answer: 4
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11/11/23, 11:11 PM Review Test Submission: Online quiz 7 (Chapter 8) – ...

Answers: 1

Question 3 1 out of 1 points

A _____ variable is used to incorporate qualitative information in a regression

model.

Selected Answer: dummy

Answers: dependent

continuous

binomial

dummy

Question 4 1 out of 1 points

Which of the following is true of dependent variables?

Selected Answer: A dependent variable can be binary.

Answers: A dependent variable can only have a numerical value.

A dependent variable cannot have more than 2 values.

A dependent variable can be binary.

A dependent variable cannot have a qualitative meaning.

Question 5 1 out of 1 points

Consider the following regression equation:

In which of the following cases, is ‘y’ a discrete variable?

Selected Answer: y indicates the number of children in a family

Answers: y indicates the gross domestic product of a country

y indicates the total volume of rainfall during a year

y indicates household consumption expenditure

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11/11/23, 11:11 PM Review Test Submission: Online quiz 7 (Chapter 8) – ...

y indicates the number of children in a family

Question 6 1 out of 1 points

In the following regression equation, y is a binary variable:

In this case, the estimated slope coefficient, measures _____.

Selected
Answer: the predicted change in the probability of success when x1
increases by one unit, everything else remaining constant

Answers: the predicted change in the value of y when x1 increases by one

unit, everything else remaining constant

the predicted change in the value of y when x1 decreases by one

unit, everything else remaining constant

the predicted change in the probability of success when x1

decreases by one unit, everything else remaining constant

the predicted change in the probability of success when x1

increases by one unit, everything else remaining constant

Question 7 1 out of 1 points

The quarterly increase in an employee’s salary depends on the rating of his work
by his employer and several other factors as shown in the model below:
Increase in salary= ​Rating + other factors.
The variable ‘Rating’ is a(n) _____.

Selected Answer: ordinal variable

Answers: dependent variable

ordinal variable

continuous variable

Poisson variable

Question 8 1 out of 1 points

The following simple model is used to determine the annual savings of an

individual on the basis of his annual income and education.
Savings =

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11/11/23, 11:11 PM Review Test Submission: Online quiz 7 (Chapter 8) – ...
The variable ‘Edu’ takes a value of 1 if the person is educated and the variable
‘Inc’ measures the income of the individual.​
Refer to the above model. If > 0, _____.

Selected
Answer: educated people have higher savings than those who are not
educated

Answers: uneducated people have higher savings than those who are
educated

educated people have higher savings than those who are not
educated

individuals with lower income have higher savings

individual with lower income have higher savings

Question 9 1 out of 1 points

The following simple model is used to determine the annual savings of an

individual on the basis of his annual income and education.

Savings =
The variable ‘Edu’ takes a value of 1 if the person is educated and the variable
‘Inc’ measures the income of the individual.

Refer to the model above. The inclusion of another binary variable in this model
that takes a value of 1 if a person is uneducated, will give rise to the problem of
_____.
Selected Answer: dummy variable trap

Answers: omitted variable bias

self-selection

dummy variable trap

heteroskedastcity

Question 10 1 out of 1 points

The following simple model is used to determine the annual savings of an

individual on the basis of his annual income and education.

Savings =
The variable ‘Edu’ takes a value of 1 if the person is educated and the variable
‘Inc’ measures the income of the individual.

Refer to the model above. The benchmark group in this model is _____.

Selected Answer: the group of uneducated people

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11/11/23, 11:11 PM Review Test Submission: Online quiz 7 (Chapter 8) – ...

Answers: the group of educated people

the group of uneducated people

the group of individuals with a high income

the group of individuals with a low income

Sunday, 12 November 2023 3:11:43 AM AEDT

← OK

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