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BUSINESS 802
FIRST EXAM KEY A
FALL 1992
MANAGERIAL ECONOMICS
MULTIPLE CHOICE QUESTIONS (25 pts, 1pt each)
1.
Movement along a demand curve is indicated by the quantity effect of a change in:
A.
advertising.
B.
price of other goods.
C.
income.
>
D.
price.
2.
A decrease in demand is caused by:
A.
an increase in price.
B.
a decrease in price.
>
C.
a decrease in advertising.
D.
an increase in the price of substitutes.
3.
A decrease in employerpaid health costs leads to a:
>
A.
shift
in supply.
B.
shift in demand.
C.
movement along the supply curve.
D.
movement along the demand curve.
4.
A method for predicting buyer response to hypothetical changes in product quality is provided by:
A.
field studies.
B.
regression analysis.
C.
market experiments.
>
D.
consumer surveys.
5.
Demand estimation in a controlled environment is possible with:
A.
field studies.
B.
regression analysis.
>
C.
market experiments.
D.
consumer surveys.
6.
A relation known with certainty is a:
A.
statistical relation.
B.
crosssection relation.
>
C.
deterministic relation.
D.
timeseries relation.
7.
A linear model implies:
>
A.
a constant effect of X on Y.
B.
constant elasticity.
C.
a loglinear relation.
D.
a constant effect of Y on X.
8.
A multiple regression model necessarily involves:
A.
a linear relation.
>
B.
more than one X variable.
C.
a multiplicative relation.
D.
more than one Y variable.
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9.
In a simple regression model, the correlation coefficient is:
A.
equal to one.
B.
greater than one.
C.
less than one.
>
D.
the square root of the coefficient of determination.
10.
Holding all else equal, the corrected coefficient of determination falls with:
A.
a decrease in the number of estimated coefficients.
B.
an increase in sample size.
>
C.
a decrease in R
2
.
D.
an increase in the standard error of the estimate.
11.
A sample of market data taken at a point in time is a:
>
A.
crosssection.
B.
statistical series.
C.
time series.
D.
stratified sample.
12.
The standard deviation of the dependent Y variable after controlling for the influence of all X variables is given by:
A.
R
2
B.
¯
R
2
>
C.
S.E.E.
D.
.
ˆ
Y
t
13.
A measure of statistical significance for explained variation is given by the:
A.
tstatistic.
>
B.
Fstatistic.
C.
coefficient of determination.
D.
corrected coefficient of determination.
14.
Multicollinearity is caused by:
A.
a linear XY relation.
B.
a loglinear XY relation.
>
C.
high correlation among the X variables.
D.
high correlation between Y and at least one X variable.
15.
Heteroskedasticity is produced by:
A.
normally distributed residuals.
B.
randomly distributed residuals.
>
C.
nonconstant variance in the disturbance term.
D.
autocorrelation.
16.
Central tendency is measured by the:
>
A.
mode.
B.
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 Spring '11
 smith
 Economics

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