30C00200_review_ps - Econometrics 30C00200 FALL 2013 Aalto University School of Business REVIEW PROBLEM SET DUE TIME IS ON FRIDAY 25th of October at

# 30C00200_review_ps - Econometrics 30C00200 FALL 2013 Aalto...

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Econometrics 30C00200 FALL 2013 Aalto University School of Business REVIEW PROBLEM SET DUE TIME IS ON FRIDAY 25thof October at noon (12:00). Return your answers to the box in Chydenia. With this problem set, you can compensate some of the points that you have lost from earlier problem sets. Note however that you cannot get over 100% from exercises. There are 20 multiple choice questions in this Problem Set. Each question is worth 0.5 points, thus the maximum points from the review set is 10 points. Notice however that a wrong answer is worth -0.5 points and question not answered is worth 0 points. The minimum points are however 0 i.e. you cannot get negative points. Please use the Review Set Answer Sheet provided in Noppa to answer the questions. ___________________________________________________________________________________ 1) Which of the following statements is true concerning the population regression function (PRF) and sample regression function (SRF)? a) The PRF is the estimated model b) The PRF is used to infer likely values of the SRF c) Whether the model is good can be determined by comparing the SRF and the PRF d) The PRF is a description of the process thought to be generating the data. 2) Consider a model 2011213241()yxxxD xuwhere variable D is a dummy variable categorizing the data into two groups. What is the ceteris paribus effect of variable 1xon y for group having D=1.
__________________________________________________________________________________ 3) Consider for example the usual t-test. Small P-value from this test indicates…___________________________________________________________________________________

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