Econometrics Exam 1 || A+ Guaranteed.
Nonexperimental data correct answers data that has not been obtained through controlled
experiments on individuals, firms, or segments of the economy
observational data correct answers Nonexperimental data; emphasize the fact that the researcher
is a passive collector of the data.
Experimental data correct answers Data that have been obtained by running
a controlled experiment.
empirical analysis correct answers A study that uses data in a formal econometric analysis to test
a theory, estimate a relationship, or determine the effectiveness of a policy.
economic model correct answers A relationship derived from economic theory or less formal
economic reasoning.
econometric model correct answers An equation relating the dependent variable to a set of
explanatory variables and unobserved disturbances, where unknown population parameters
determine the ceteris paribus effect of each explanatory variable
cross-sectional data set correct answers A data set collected by sampling a population at a given
point in time.
random sampling correct answers A sampling scheme whereby each observation is drawn at
random from the population. In particular, no unit is more likely to be selected than any other
unit, and each draw is independent of all other draws.
time series data correct answers Data collected over time on one or more variables.
data frequency correct answers The interval at which time series data are
collected. Yearly, quarterly, and monthly are the most common data frequencies.
pooled cross section correct answers A data configuration where independent
cross sections, usually collected at different points in time, are combined to produce a single data
set.
panel data correct answers A data set constructed from repeated cross sections over time. With a
balanced panel, the same units appear in each time period. With an unbalanced panel, some units
do not appear in each time period, often due
to attrition.
causal effect correct answers A ceteris paribus change in one variable has
an effect on another variable.
ceteris paribus correct answers All other relevant factors are held fixed.
, average correct answers The sum of n numbers divided by n
constant elasticity model correct answers A model where the elasticity of the dependent variable,
with respect to an explanatory
variable, is constant; in multiple regression, both variables appear in logarithmic form.
derivative correct answers The slope of a smooth function, as defined
using calculus.
descriptive statistic correct answers A statistic used to summarize a set of
numbers; the sample average, sample median, and sample standard deviation are the most
common
diminishing marginal effect correct answers The marginal effect of an explanatory variable
becomes smaller as the value of the explanatory variable increases
elasticity correct answers The percentage change in one variable given a 1% ceteris paribus
increase in another variable
exponential function correct answers A mathematical function defined
for all values that has an increasing slope but a constant proportionate change.
intercept correct answers In the equation of a line, the value of the y variable when the x variable
is zero.
linear function correct answers A function where the change in the dependent variable, given a
one-unit change in an independent variable, is constant
log function correct answers A mathematical function, defined only for
strictly positive arguments, with a positive but decreasing slope.
marginal effect correct answers The effect on the dependent variable that
results from changing an independent variable by a small amount.
median correct answers In a probability distribution, it is the value where there is a 50% chance
of being below the value and a 50% chance of being above it. In a sample of numbers, it is the
middle value after the numbers have been ordered
natural logarithm correct answers A mathematical function defined
for positive arguments that has a positive, but diminishing, slope.
nonlinear function correct answers A function whose slope is not constant.
partial derivative correct answers For a smooth function of more than one
variable, the slope of the function in one direction
Nonexperimental data correct answers data that has not been obtained through controlled
experiments on individuals, firms, or segments of the economy
observational data correct answers Nonexperimental data; emphasize the fact that the researcher
is a passive collector of the data.
Experimental data correct answers Data that have been obtained by running
a controlled experiment.
empirical analysis correct answers A study that uses data in a formal econometric analysis to test
a theory, estimate a relationship, or determine the effectiveness of a policy.
economic model correct answers A relationship derived from economic theory or less formal
economic reasoning.
econometric model correct answers An equation relating the dependent variable to a set of
explanatory variables and unobserved disturbances, where unknown population parameters
determine the ceteris paribus effect of each explanatory variable
cross-sectional data set correct answers A data set collected by sampling a population at a given
point in time.
random sampling correct answers A sampling scheme whereby each observation is drawn at
random from the population. In particular, no unit is more likely to be selected than any other
unit, and each draw is independent of all other draws.
time series data correct answers Data collected over time on one or more variables.
data frequency correct answers The interval at which time series data are
collected. Yearly, quarterly, and monthly are the most common data frequencies.
pooled cross section correct answers A data configuration where independent
cross sections, usually collected at different points in time, are combined to produce a single data
set.
panel data correct answers A data set constructed from repeated cross sections over time. With a
balanced panel, the same units appear in each time period. With an unbalanced panel, some units
do not appear in each time period, often due
to attrition.
causal effect correct answers A ceteris paribus change in one variable has
an effect on another variable.
ceteris paribus correct answers All other relevant factors are held fixed.
, average correct answers The sum of n numbers divided by n
constant elasticity model correct answers A model where the elasticity of the dependent variable,
with respect to an explanatory
variable, is constant; in multiple regression, both variables appear in logarithmic form.
derivative correct answers The slope of a smooth function, as defined
using calculus.
descriptive statistic correct answers A statistic used to summarize a set of
numbers; the sample average, sample median, and sample standard deviation are the most
common
diminishing marginal effect correct answers The marginal effect of an explanatory variable
becomes smaller as the value of the explanatory variable increases
elasticity correct answers The percentage change in one variable given a 1% ceteris paribus
increase in another variable
exponential function correct answers A mathematical function defined
for all values that has an increasing slope but a constant proportionate change.
intercept correct answers In the equation of a line, the value of the y variable when the x variable
is zero.
linear function correct answers A function where the change in the dependent variable, given a
one-unit change in an independent variable, is constant
log function correct answers A mathematical function, defined only for
strictly positive arguments, with a positive but decreasing slope.
marginal effect correct answers The effect on the dependent variable that
results from changing an independent variable by a small amount.
median correct answers In a probability distribution, it is the value where there is a 50% chance
of being below the value and a 50% chance of being above it. In a sample of numbers, it is the
middle value after the numbers have been ordered
natural logarithm correct answers A mathematical function defined
for positive arguments that has a positive, but diminishing, slope.
nonlinear function correct answers A function whose slope is not constant.
partial derivative correct answers For a smooth function of more than one
variable, the slope of the function in one direction
