test 4 Flashcards
1
Q
As the sample size becomes larger the t-distribution becomes
more like the normal distribution
A
t
2
Q
As the sample size becomes larger the t-distribution becomes
more like the normal distribution
A
T
3
Q
regression residuals are the same as equation errors
A
f
4
Q
EQUATION ERRORS ARE HORIZONTAL DISTANCES FROM THE SCATTER PLOT TO THE POPLUATION FUNCTION
A
F:
The equation errors are the vertical distances from the scatter plot
to the population regression function.
5
Q
OLS residual can sometime not sum to zero
A
F
it always sum to 0
6
Q
The prediction error is partly due to the random disturbance
u and partly due to the inaccurate estimate of β.
A
T
7
Q
The prediction error variance is smallest when X equals its mean
value (in this case zero). It gets larger the further X is from its mean
A
T
