CalssTestv4.pdf - Name ID Version 4 ETC2410 ETC3440 ETW2410...

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Name: ID: Version 4 ETC2410 - ETC3440 - ETW2410 - BEX2410 Introductory Econometrics Class Test - 7 April 2016 Circle the option that is the best answer to the question out of the 6 choices provided. If you circle more than one option for a question, you get zero for that question. We would like to make an “app” that predicts men’s body fat percentage given easily available body measurements. We find a data set that contains accurate measurements of body fat percentage BFAT, weight (in kg) WGHT and abdomen circumference (in cm) ABDO for 123 randomly selected adult men. Questions 1, 2, 3, 4, 5 and 6 refer to this problem. Figure 1: Scatter plots of body fat percentage against weight and abdomen circumference 1. Which of the following statements cannot be inferred from the scatter plots in Figure 1: (a) Body fat percentage is positively correlated with weight (b) If we regress BFAT on a constant and ABDO, the OLS estimate of the coef- ficient of ABDO will be positive (c) Body fat percentage and abdomen circumference are positively correlated (d) If we regress BFAT on a constant, ABDO and WGHT, the OLS estimates of both slope parameters will be positive (e) all of the above (f) none of the above Page 1 of 8
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2. If we convert weight data from kilograms to grams and then look at the scatter plot between body fat percentage and weight in grams, We have run a regression of BFAT on a constant, ABDO and WGHT, and obtained the following results: Figure 2: The next four questions relate to the following regression output 3. R 2 = 0 . 66 tells us that - 0 . 66 2
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4. We want to test that given abdomen circumference, weight does not contribute
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