test 2

Question 1

In the bivariate regression model regression residuals can be estimated

Answer 1

Y-a-bhatX

Question 2

If the covariance between X and Y is negative then this implies that their correlation coefficient

Answer 2

negative

Question 3

In the bivariate regression model, which of the following expressions will give an unbiased estimate of the error variance

Answer 3

rss(n-2)

Question 4

For the general linear model of the form β= +yX u which of the following expressions can be used to solve for the ordinary least squares estimates of the β parameters

Answer 4

Bhat = (X_t X) ^-1 X ty

Question 5

A model is said to be misspecified if:

Answer 5

It excludes a relevant explanatory variableb) It includes an irrelevant explanatory variablec) The functional form used is incorrect

Question 6

If the Durbin-Watson statistic is significantly less than two then this indicates the presence o

Answer 6

Positively autocorrelated errors

Question 7

. The Box-Ljung test statistic follows which of these distributions

Answer 7

he chi-squared distribution with degrees of freedom equal to the order of serial correlation

Question 8

Which of the following would be reasonable ways to deal with serial correlation in the residuals of an estimated equation

Answer 8

Difference the data

Modify the equation to include more l

Question 9

If the errors of a regression model are heteroscedastic then

Answer 9

…

Question 10

The Goldfeld-Quandt test is a test fo

Answer 10

Heteroscedastic errors in which the variance is a function of the size of the exogenous variable