1. The interpretation of the slope coefficient in the model Y = b0 + b1*ln(X) is as follows:
A) a 1% change in X is associated with a b1% change in Y.
B) a 1% change in X is associated with a change in Y of 0.01*b1 .
C) a change in X by one unit is associ

1.
The analysis is externally valid if
A) the statistical inferences about causal effects are valid for the population being studied.
B) the study has passed a double blind refereeing process for a journal.
C) its inferences and conclusions can be general

Economics 328
Midterm February 14, 2011
Instructions: Answer All Questions
1
Exercise 1: 20% - 4% for each necessary assumption + 4% for explanation
State the Gauss-Markov Theorem. You should give all the necessary assumptions and
explain in words what th

1. The confidence interval for a single coefficient in a multiple regression
A) makes little sense because the population parameter is unknown.
B) should not be computed because there are other coefficients present in the model.
C) contains information fr

Practice Midterm 328
1) In the multiple regression model, the adjusted R2, R 2
a.
b.
c.
d.
cannot be negative.
will never be greater than the regression R2.
equals the square of the correlation coefficient r.
cannot decrease when an additional explanatory

1.
a.
b.
c.
2.
a.
Growth on tradeshare
Intercept
Tradeshare
Estimate
0.6403
2.3064
Std. error
0.4900
0.7735
t value
1.307
2.982
Pr (> ltl)
0.19606
0.00407
Intercept
Yearsschool
Estimate
0.95829
0.24703
Std. error
0.41846
0.08873
t value
2.290
2.784
Pr (>