Practice Set 2 with Explanations.pdf - PRACTICE SET 2 ECONOMIC AND FINANCIAL MODELLING(200916 SAMPLE MID-SEMESTER QUESTIONS Correct Answers are

Practice Set 2 with Explanations.pdf - PRACTICE SET 2...

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1 PRACTICE SET 2 ECONOMIC AND FINANCIAL MODELLING (200916) SAMPLE MID-SEMESTER QUESTIONS Correct Answers are highlighted in Yellow. Text in bold print are explanations. 1.A data set containing the number of adults with university degrees in each regional area and greater capital city regions throughout Australia in 2009 is ____________ . a.time series data b.cross-section data c.panel data d.flow data 2.The estimators ˆand ˆdetermined by OLS will be the Best Linear Unbiased Estimators (BLUE) if which of the following assumptions hold. (I) The errors have zero mean (II) The variance of the errors is constant and finite over all values of the independent variable(s) (III) The errors are linearly independent of one another (IV)There is no relationship between the error and corresponding independent variables 3.For a normal distribution, the skewnessand kurtosismeasures are as follows: 4.The following are all least squares assumptions with the exception of: 5.Which of the following is the least likely to be quantitative? a.height b.gender c.education d.weight
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