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Unformatted text preview: Econ 444 Elementary Econometrics (Winter 2010) HOMEWORK EXERCISE: 3 Due in my Mail Box at Arps Hall Room 410, by 4:30 pm on Friday Feb 5. 1. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1)Heteroskedasticity means that A)homogeneity cannot be assumed automatically for the model. B)the observed units have different preferences. C)the variance of the error term is not constant. D)agents are not all rational. 2)The only difference between a one- and two-sided hypothesis test is A) the critical value ( t c ). B)dependent on the sample size n. C)the sign of the slope coefficient. D)the null hypothesis. 3)When estimating a demand function for a good where quantity demanded is a linear function of the price, you should A)not include an intercept because the price of the good is never zero. B)reject the idea that price determines demand unless the coefficient is at least 1.96....
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This note was uploaded on 04/13/2010 for the course ECON 444 taught by Professor Ogaki during the Winter '07 term at Ohio State.
- Winter '07