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BUAN 6312 Exam 1 Expected Questions and Answer

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BUAN 6312 Exam 1 Expected Questions and Answers In an F test, J is the number of what in the model? - ANSWER-Restrictions In an F test, K is the number of what in the unrestricted model? - ANSWER-Coefficients including the intercept Type I error - ANSWER-Rejecting H0 when true Type II error -...

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BUAN 6312 Exam 1 Expected Questions

and Answers


In an F test, J is the number of what in the model? - ANSWER✔✔-Restrictions


In an F test, K is the number of what in the unrestricted model? - ANSWER✔✔-Coefficients including the

intercept


Type I error - ANSWER✔✔-Rejecting H0 when true


Type II error - ANSWER✔✔-Not rejecting H0 when false


Reject H0 if p is ______ than alpha - ANSWER✔✔-less


If the chosen model is correct, the plotted residuals should look completely what? - ANSWER✔✔-

random


What is it called when a relevant variable explanatory variable is left out and causes bias in other

variables? - ANSWER✔✔-Omitted variable bias


Irrelevant variables increase what two things for other variables? - ANSWER✔✔-SE and p values


When a set of variables have exact collinearity is included in an econometric model, the coefficient

estimates are what? - ANSWER✔✔-Undefined

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What is not used to evaluate model specifications? - ANSWER✔✔-R^2


What is eliminated by including an additional variable in a regression? - ANSWER✔✔-Omitted variable

bias


Running functions where each explanatory variable is estimated as a function of the other explanatory

variables can help detect what? - ANSWER✔✔-Collinearity


How does omitting a relevant variable affect the other coefficients? - ANSWER✔✔-They are biased in

either direction


The coefficients of collinear variables in an econometric model have larger what? - ANSWER✔✔-

Standard error


An interaction term is a variable that is what? - ANSWER✔✔-Product of 2 explanatory variables


How can you estimate a non-linear function using least squares? - ANSWER✔✔-Transform such as

squaring, cubing some variables


What is the p value in an F test the probability of? - ANSWER✔✔-All coefficients other than the intercept

are zero


What does R^2 measure? - ANSWER✔✔-Proportion of variation in y explained by variation in x


What number is subtracted from N in a multiple regression to find the degrees of freedom? -

ANSWER✔✔-Number of coefficients



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