Exam facts Flashcards
1
Q
If an equation only contains one endogenous variable, it is in it’s __ form
A
Reduced
2
Q
When testing joint significance, the null is always:
A
Insignificance
3
Q
If there’s a single hypothesis, we can use both:
A
T and F test
4
Q
If there are multiple hypotheses, we use an:
A
F test
5
Q
If there is one hypothesis but one coefficient, we use:
A
F test
6
Q
For f(x) to be a valid pdf, we require:
A
- f(x) > 0 for all x
- Integrated f(x) = 0
7
Q
G, I and X must be correlated with YD but not with:
A
u
8
Q
Two stage least squares allows for endogenous aggressors, but OLS estimates suffer from:
A
Simultaneous equations bias
9
Q
Two stage least squares reduces simultaneous equations bias but reduces:
A
Efficiency
10
Q
Two squares least squares may increase:
A
Mean squares estimates of the estimate
