PracticeQuestions3 - ECMT 463-100 Summer 2008 Raul...

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- 100 Summer 2008 Raul Ibarra - Ramirez Practice Questions for Exam 3 _____________________________________________________________________________________________________ 1) The overall regression F - statistic tests the null hypothesis that A) the intercept in the regression and at least one, but not all, of the slope coefficients is zero. B) all slope coefficients are zero. C) all slope coefficients and the intercept are zero. D) the slope coefficient of the variable of interest is zero, but that the other slope coefficients are not. 2) The interpretation of the slope coefficient in the model ln( Y i ) = Ά 0 + Ά 1 ln( X i ) + u i is as follows: A) a change in X by one unit is associated with a 100 Ά 1 % change in Y . B) a change in X by one unit is associated with a Ά 1 change in Y . C) a 1% change in X is associated with a change in Y of 0.01 Ά 1 . D) a 1% change in X is associated with a Ά 1 % change in Y . 3) An example of the interaction term between two independent, continuous variables is A) Y i = Ά 0 + Ά 1 D 1 i + Ά 2 D 2 i + Ά 3 ( D 1 i × D 2 i ) + u i . B) Y i = Ά 0 + Ά 1 X i + Ά 2 D i + Ά 3 ( X i × D i ) + u i . C) Y i = Ά 0 + Ά 1 X 1 i + Ά 2 X 2 i + u i . D) Y i = Ά 0 + Ά 1 X 1 i + Ά 2 X 2 i + Ά 3 ( X 1 i × X 2 i ) + u i . 4) For the polynomial regression model, A) the critical values from the normal distribution have to be changed to 1.96 2 , 1.96 3 , etc. B) you can still use OLS estimation techniques, but the t - statistics do not have an asymptotic normal distribution. C) the techniques for estimation and inference developed for multiple regression can be applied. D) you need new estimation techniques since the OLS assumptions do not apply any longer. 5) In the regression model Y i = Ά 0 + Ά 1 X i + Ά 2 D i + Ά 3 ( X i × D i ) + u i , where X is a continuous variable and D is a binary variable, Ά 2 A) is the difference in means in Y between the two categories. B) indicates the difference in the slopes of the two regressions. C) is usually positive. D) indicates the difference in the intercepts of the two regressions. 6) Autoregressive distributed lag models include A) lags and leads of the dependent variable. B) current and lagged values of the error term. C) current and lagged values of the residuals. D) lags of the dependent variable, and lagged values of additional predictor variables. 7) One of the sources of error in the RMSFE in the AR(1) model is A) that the value of the explanatory variable is not known with certainty when making a forecast. B) the error in estimating the coefficients Ά 0 and Ά 1 . C) due to measuring variables in logarithms. D) the model only looks at the previous period’s value of Y when the entire history should be taken into account. 1
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PracticeQuestions3 - ECMT 463-100 Summer 2008 Raul...

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