While working with the sales manager of your firm you have estimated the

# While working with the sales manager of your firm you

• Test Prep
• 24
• 86% (7) 6 out of 7 people found this document helpful

This preview shows page 8 - 11 out of 24 pages.

15. While working with the sales manager of your firm you have estimated the following model of salesvolume as a function of monthly household income:(0.781) (0.392) Where Q is monthly sales volume, I is monthly household income in thousands, and standard errors are listed below the parameter estimates.What does the model predict sales volume to be if using the corrected predictor when income is \$4000 per month? 16. What hypothesis is tested when using the Jarque-Berra test ? 1. When the residuals from a simple regression model appear to be correlated with x, this is known as_______________________________. 2. If a scatter plot of the data reveals an inverted U shape, what data transformation would allow it to beestimated with simple linear regression? . 3. A measure of the symmetry of a distribution is ________________________. 4. What is the skewness of the normal distribution? 5. What about the distribution of a random variable does kurtosis measure? 6. What is the kurtosis measure of the normal distribution? 3 File: Ch05, Chapter 5, The Multiple Regression Model 1. When an error term is added to an economic model and assumptions about the distribution of the error term are made, the resulting model is ______________. 2.) How should βkin the general multiple regression model be interpreted? 3.) Which of the following is not an assumption of the multiple regression model? c.) The least squares estimators are BLUE. 4.) What is the unbiased estimator of σ2in the multiple regression model? 5.) Why does the denominator of σσ2need to be the same as the degrees of freedom in the model? 6.) In the multiple regression model which of the following does NOT lead to larger variances of the least squares estimators b 7.) The matrix below represents the variance-covariance matrix estimated from the multiple regression model:Which 2 elements of the matrix should always be equal? 8.) The matrix below represents the variance-covariance matrix estimated from the multiple regression model:Which element of the matrix cannot be negative? A  • • • 