week 3 economic quiz

week_3_quiz_questions x

1. In regression analysis, the existence of a high degree of inter-correlation among some or all of the explanatory variables in the regression equation constitutes

a) autocorrelation

b) nonlinearities

c) heteroscedasticity

d) multicollinearity

2. The estimated slope coefficient (b) of the regression equation (Y = a + bX) measures the ____ change in Y for a one ____ change in X.

a) percentage, unit

b) percentage, percent

c) unit, unit

d) unit, percent

3. One commonly used test in checking for the presence of autocorrelation when working with time series data is the

a) F-test

b) Durbin-Watson test

c) T-test

d) Z-test

4. When using a multiplicative power function (Y = a X1b1 X2b2 X3b3) to represent an economic relationship, estimates of the parameters (a, b’s) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship.

a) semilogarithmic (using a logarithmic transformation on one side of the equation only)

b) double-logarithmic (using a logarithmic transformation on both sides of the equation)

c) reciprocal

d) polynomial

5. double-logarithmic (using a logarithmic transformation on both sides of the equation)

a) F-test
b) Durbin-Watson test
c) T-test
d) Z-test

6. The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:

a) 1.0

b) their minimum values

c) their average values

d) 0.0

7. The standard deviation of the error terms in an estimated regression equation is known as

a) coefficient of determination

b) correlation coefficient

c) Durbin-Watson statistic

d) standard error of the estimate

8. One shortcoming of the use of ____ in demand analysis is that the participants are generally aware that their actions are being observed and hence they may seek to act in a manner somewhat different than normal.

a) market experiments

b) consumer focus groups

c) statistical (econometric) methods

d) a and b

9. In regression analysis, the existence of a significant pattern in successive values of the error term constitutes

a) autocorrelation

b) heteroscedasticity

c) multicollinearity

d) nonlinearities

10. The identification problem arises in econometric estimation when which of the following is not accounted for in estimating the model?

a) The variance of the demand elasticity

b) The consistency of quantity demanded at any given point

c) The negative slope of the demand function

d) The simultaneous relationship between the demand and supply functions