Econometrics || All Correct.

What is a stationary time series process? correct answers One whose probability distributions are stable over time - if we take any collection of random variables in the sequence and then shift that sequence ahead by h time periods, the joint probability remains unchanged When is a stochastic pro...

The Classical Linear Regression Model (CLRM) correct answers Assumptions: The model is linear in the parameters The explanatory variables X are uncorrelated with the error term The previous assumption leads to E(e|X)=0 The model is correctly specified (i.e. there is no specification bias). Thi...

holding x2 constant, a 1 unit increase in x1 is associated with

You estimate a model with 4 explanatory variables, and in intercept from a data set with 200 observations. To test hypotheses on this model you should use a t-distribution with how many degrees of freedom? a. 196 b. 194 ity d. 195 correct answers d. 195 When should a right-tailed significance...

Which of the following is the first step in empirical economic analysis? a. Collection of data b. Statement of hypotheses c. Testing of hypotheses d. Specification of an econometric model correct answers d. Specification of an econometric model Data on the income of law graduates collect...

econometrics is the branch of economics that correct answers develops and uses statistical methods for estimating economic relationships nonexperimental data is called correct answers time series data which of the following is true of experimental data correct answers experimental data are col...

In the equation, y=β0+β1x1+β2x2+u β2 is a(n) _____. a. independent variable b. dependent variable c. slope parameter d. intercept parameter correct answers C Consider the following regression equation: y=β1+β2x1+β2x2+u . What does β1 imply? a. β1 measures the ceteris paribus eff...

Using the notation of the text, letting β0 = 3.0 and β1=2.0 in a regression model implies that: correct answers Y is expected to increase by 2.0 units if X increases by 1 unit If R^2 = 0.8, then correct answers SSR/TSS = 0.2 In a linear regression the one regressor, the standard error of the...

Consider the following regression model: log(y) = β0 + β1x1 + β2x1 x3+ β3x3 + u, with βk≠0 (k=0,1,...,3). This model will suffer from functional form misspecification if _____. correct answers the interaction term x1x3 is omitted from the model Which of the following correctly identifies a...

What is econometrics? correct answers Tools of economic theory, math, and statistical inference are applied to the analysis of economic phenomena. How do we do econometrics? What are the steps involved? correct answers 1. Make a hypothesis 2. Collect data 3. Specify the model 4. Estimate the p...

1. What is a dummy/binary/indicator variable? 2. What are the 2 types of data? 3. What is econometrics? 4. What are the 2 branches of statistics? correct answers 1. Takes values of 0 or 1 to indicate whether some condition is met 0 = no 1 = yes 2. i. Experimental = researcher manipulates the...

least squares correct answers estimates the regression parameters in such a way that the sum of the squared difference between the actual Y values and the estimated Y values is as small as possible OLS estimators correct answers estimators of the regression parameters obtained by the method of le...

An important feature of a modern approach is that the explanatory variables—along with the dependent variable—are treated as correct answers outcomes of random variables Econometrics is based upon correct answers the development of statistical methods for estimating economic relationships, t...