ECN 6

Question 1

Does the 3 var regression line pass through the means of the independent and dependent vars?

1.Yes

2. No
3. Only if the independent is greater than dependent
4. Only if the dependent is greater than independent

Answer 1

1.Yes

Question 2

What is the mean value of estimated Yi equal to

Answer 2

The mean value of the actual Yi

Question 3

The OLS estimators of the partial regression coefficients have the qualities of…

Answer 3

1. Linear
2. Unbiased
3. Minimum variance in the class of all linear unbiased estimators (BLUE)

Question 4

What does BLUE stand for

Answer 4

Best linear unbiased estimators

Question 5

What is R^2 is a
1. decreasing function of the number of explanatory vars
2. nondecreasing function of the number of explanatory vars
3. increasing function of the number of explanatory vars

Answer 5

2. nondecreasing function of the number of explanatory vars

Question 6

As the # of regressors increases (Xi), R^2 almost invariably __________ and never _____.
1. decreases, increases
2. increases, decreases
3. changes, stays constant

Answer 6

2. increases, decreases

Question 7

Can you compare two R^2 values?

1. Yes
2. No
3. No, unless the sample size and dependent var are the same
4. Yes, unless the sample size and dependent var are the same
5. No, unless the sample size and independent var are the same

Answer 7

3. No, unless the sample size and dependent var are the same