Misspecification - Samenvattingen, Aantekeningen en Examens

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 difference between cross-sectional data and time series data? correct answers Time series data is based on temporal ordering, whereas cross-sectional data is not. A stochastic process refers to a:...

If the data are missing at random, then the missing data do not cause any statistical problems. a. True b. False correct answers True A multiple regression model suffers from functional form misspecification when it does not properly account for the relationship between the dependent and the observed explanatoryvariables. a. True b. False correct answers True Consmptn= 0+ 1Inc + 2Consmptn-1+ u where 'Consmptn' measures the monthly consumption expenditure of a household...

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 parameters 5. Check model specification - is the model good? 6. Test the hypothesis 7. Use the model to predict or forecast or answer questions Simple linear model correct answers yi= B1 + B2Xi +...

Summary for the course Empirical Finance, given in period 1 of the Master of Finance at the VU. This summary greatly covers all theoretical subjects which are taught in this course .

Major uses of econometrics correct answers Forecasting: interest rates, stock prices Policy evaluation: effect of a minimum wage Testing economic policy: do consumers behave as our theories predict Estimating (magnitudes of) economic relationships (PED, MPC, returns to education) Why Econometrics? correct answers Observe the world and cannot experiment Means we can rarely hold constant all factors in the economic model What is covariance? correct answers Covariance measures the total v...

name the four types of specification errors correct answers choice of independent variables, functional form, misspecification of error term, measurement error what assumptions are satisfied when a model is overspecified? correct answers MLR1-4 what is the consequence of overspecification? correct answers the included variable may be correlated with other explanatory variable. No cost in terms of bias but increases sampling variance what assumption does Omitted variable bias violate? co...

VSB 4002 EXAM 1 QUESTIONS & ANSWERS 2024/2025 T/F: The FCPA makes it illegal for entities covered by the Act to conceal evidence of illicit payments made to foreign government officials through falsification of records and/or misspecification of expenses - ANSWERSTrue T/F: When implementing corporate level strategies, firms can create marketing synergies between portfolio SBUs by exploiting overlapping market segments and piggy-back distribution systems - ANSWERSTrue T/F: SIEM technol...

What assets are often chracterized as traditional by some and alternatives by others in: hedge funds, private equity, and real assets - Answer Hedge Funds: Liquid alternative mutual funds Private Equity: Closed-end funds with illiquid holdings Real Assets: Public real estate and public equities of corporations with performance dominated by stable positions in real assets 4 major methods of analysis that distinguish the analysis of alternative investments from trad. investments - Answer ...

CAIA Practice Questions with correct Answers 2024 What assets are often characterized as traditional by some and alternatives by others in: hedge funds, private equity, and real assets Hedge Funds: Liquid alternative mutual funds Private Equity: Closed-end funds with illiquid holdings Real Assets: Public real estate and public equities of corporations with performance dominated by stable positions in real assets 4 major methods of analysis that distinguish the analysis of alternat...

T/F: The FCPA makes it illegal for entities covered by the Act to conceal evidence of illicit payments made to foreign government officials through falsification of records and/or misspecification of expenses - True T/F: When implementing corporate level strategies, firms can create marketing synergies between portfolio SBUs by exploiting overlapping market segments and piggy-back distribution systems - True T/F: SIEM technologies assist Donor Organizations in protecting their IPs by track...