**Question 1**

The population regression line gives the mean value of the dependent variable corresponding to each value of the independent variable outside the population as a whole.

True

False

**Question 2**

Objective(s) of Regression Analysis may be:

All of the above

None of the above

To forecast the mean value of the dependent variable, given the value(s) of the independent variables(s) beyond the sample range.

To test hypotheses about the nature of dependence as suggested by an economic theory.

To estimate the mean value of the dependent variable, given the values of the independent variables.

**Question 3**

The principle of Ockham razor suggest that:

It is better to have more as compared to having less.

It is vain to do with more what can be done with less.

Regression models should be kept as simple as possible

All of the above

B & C above

**Question 4**

In econometrics, we typically do not rely on exact or finite sample distribution because.

We have approximately an infinite number of observations

Variables typically are normally distributed.

The covariances of Yi, Yj are typically not zero

Asymptotic distributions can be counted on to provide good approximations to the exact sampling distribution.

**Question 5**

**1 pts**

In reality, the two-variable regression model is critically important because the behavior of a dependent variable can generally be explained by a single explanatory variable.

True

False

**Question 6**

Yi = B1 + B32Xi+ ui is a Linear regression model.

True

False

**Question 7**

The best way to estimate the PRF is to select b1 and b2, the estimators of B1 and B2, in such a way that the residuals are as small as possible.

True

False

**Question 8**

Yi = B1 + B2 (1/Xi) is a Linear regression model.

True

False

**Question 9**

Regression Analysis

All of the above

None of the above

Is concern with the study of the relationship between an explained variable and one or more other explanatory variables.

Is concern with the study of the relationship between a dependent variable and one or more other explanatory variables.

Is concern with the study of the relationship between an explained variable and one or more other independent variables.

**Question 10**

Objective(s) of Regression Analysis is:

To forecast the mean value of the dependent variable, given the value(s) of the independent variables(s) beyond the sample range.

To test hypotheses about the nature of dependence as suggested by an economic theory.

To estimate the mean value of the dependent variable, given the values of the independent variables.

All of the above

None of the above