Quiznetik

Introduction to Econometrics | Set 1

1. Two events, A and B, are said to be mutually exclusive if:

Correct : D. P(A and B) = 0

2. A Type I error occurs when we:

Correct : B. reject a true null hypothesis

3. What is the meaning of the term "heteroscedasticity"?

Correct : A. The variance of the errors is not constant

4. What would be then consequences for the OLS estimator if heteroscedasticity is present in a regression model but ignored?

Correct : C. It will be inefficient

5. Which one of the following is NOT a plausible remedy for near multicollinearity?

Correct : D. Take logarithems of each of the variables

6. What will be the properties of the OLS estimator in the presence of multicollinearity?

Correct : A. It will be consistent unbiased and efficient

7. A sure way of removing multicollinearity from the model is to

Correct : B. Drop variables that cause multicollinearity in the first place

8. Autocorrelation is generally occurred in

Correct : B. Time series data

9. The regression coefficient estimated in the presence of autocorrelation in the sample data are NOT

Correct : C. Efficient estimators

10. In the regression function y=α + βx +c

Correct : A. x is the regressor

11. The coefficient of determination, r2 shows

Correct : A. Proportion of the variation in the dependent variable Y is explained by the independent variable X

12. BLUE is

Correct : A. Best Linear Unbiased Estimator

13. Data on one or variables collected at a given point of time

Correct : D. Cross-section data

14. The violation of the assumption of constant variance of the residual is known as

Correct : A. Heteroscedasticity

15. Formula of coefficient determination is

Correct : C. 1-RSS/TSS

16. In confidence interval estimation, α = 5%, this means that this interval includes the true β with probability of

Correct : D. 95%

17. Consider a large population with a mean of 160 and a standard deviation of 25. A random sample of size 64 is taken from this population. What is the standard deviation of the sample mean?

Correct : A. 3.125

18. In the case of multicollinearity which test will be insignificant?

Correct : B. t test

19. Hetroscedasticity is generally occurred in

Correct : A. Cross-section data

20. When there are both qualitative and quantitative variables are there in the model,

Correct : B. ANCOVA

21. When is the problem of dummy variable trap occur?

Correct : D. Both a and c

22. Durbin Watson test is associated with:

Correct : C. Autocorrelation

23. All are the types of specification errors EXCEPT:

Correct : D. over identified

24. White's test is used for the detection of ---------- -?

Correct : B. hetroscedasticity

25. Which one is not the assumption of OLS?

Correct : A. Perfect Multicollinearity

26. Scaling a dependent variable in log form in the log-lin model will------------

Correct : C. change the intercept but not the slope

27. Individual respondents, focus groups, and panels of respondents are categorised as

Correct : A. Primary Data Sources

28. The scale applied in statistics which imparts a difference of magnitude and proportions is considered as

Correct : C. Ratio Scale

29. Homogeneity of three or more population correlation coefficients can be tested by

Correct : D. χ2-test

30. The successive trials are with replacement in

Correct : B. Binomial distribution

31. Probability of occurrence of an event lies between

Correct : C. 1 and 0

32. A discrete probability distribution may be represented by

Correct : D. All of These

33. Student’s t-distribution curve is symmetrical about mean, it means that

Correct : A. Odd Order Moments are Zero

34. Which one is equal to explained variation divided by total variation?

Correct : B. Coefficient of Determination