Answered: Which of the following is NOT a good…

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 8E

Related questions

Question

1.1 Which of the following is NOT a good reason for including a disturbance term in a regression equation?/

A. To allow for random influences on the dependent variable/

B. To allow for errors in the measurement of the dependent variable/

C. It captures omitted determinants of the dependent variable

D. To allow for the non-zero mean of the dependent variable/

1.2 Consider the equation Y = B₁ + B₂X₂ + u. A null hypothesis of H₀: B2 = 0 means that/

A. X₂ has no effect on the expected value of Y /

B. B₂ has no effect on the expected value of Y/

C. X₂ has no effect on the expected value of B_{2 /}

D. Y has no effect on the expected value of X_2/

1.3 The OLS residuals in the multiple regression model/

A. can be calculated by subtracting the fitted values from the actual values /

B. are zero because the predicted values are another name for forecasted values /

C. are typically the same as the population regression function errors /

D. cannot be calculated because there is more than one explanatory variable

1.4 b₂ in the equation, Y = b₁ + b₂X, is calculated by the following formula:/

A.
B.
C. None of the three formulas is correct/ Nie een van die drie formules is korrek nie
D.

1.5 The residual from the OLS regression model is /

A. the difference between the fitted value Ŷ and the mean Ῡ/

B. the difference between the actual Y value and the mean Ῡ/

C. the difference between the actual Y value and the fitted value Ŷ/

D. the square of the difference between the fitted value Ŷ and the mean Ῡ/

1.13 If the p-value is greater than α in a two-tail test/

A. α should be changed/ moet α verander word

B. the null hypothesis should not be rejected/

C. none of the statements is correct/ D. the null hypothesis should be rejected/

E. a one-tail test should be more appropriate/

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