Review Test Submission Online Quiz 4 - Model Specification PDF

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Download Review Test Submission Online Quiz 4 - Model Specification PDF

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2/25/2020

Review Test Submission: Online Quiz 4 - Model Specification ...

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200916 (UEH T1 2020) Economic & Financial Modelling

Quoc Dung Nguyen

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Module 05 - Model Specication and Multicollinearity Review Test Submission: Online Quiz 4 - Model Specication and Multicollinearity

Review Test Submission: Online Quiz 4 - Model Specication and Multicollinearity

User

Quoc Dung Nguyen

Course

200916 (UEH T1 2020) Economic & Financial Modelling

Test

Online Quiz 4 - Model Specication and Multicollinearity

Started

26/02/20 1:33 AM

Submitted

26/02/20 1:33 AM

Due Date

5/03/20 4:00 AM

Status

Completed

Attempt Score

3 out of 11 points 

Time Elapsed

0 minute out of 20 minutes

Results Displayed Submitted Answers, Correct Answers, Incorrectly Answered Questions

Question 1

1 out of 1 points

How do you interpret the estimated value of β1 in the following model?

Selected Answer:

the elasticity of y with respect to x1

Correct Answer:

the elasticity of y with respect to x1

Question 2

1 out of 1 points

Which of the following is true? Selected Answer:

A functional form misspecification can occur if the level of a variable is used when the logarithm is more appropriate.

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Review Test Submission: Online Quiz 4 - Model Specification ...

Correct Answer:

A functional form misspecification can occur if the level of a variable is used when the logarithm is more appropriate.

Question 3

0 out of 1 points

Omitted variable bias is a problem because _______ . Selected Answer:

it causes the model to no longer be linear in the parameters. it prevents correctly estimating marginal effects.

Correct Answer:

Question 4

0 out of 1 points

If your regression results show a high R2, adj R2, and a significant F-test, but low t values for the coefficients, what is the most likely cause? Selected Answer:

omitted relevant variables

Correct Answer:

collinearity

Question 5

0 out of 1 points

How does including an irrelevant variable in a regression model affect the estimated coefficient of other variables in the model? Selected Answer:

they are biased upward and have larger standard errors

Correct Answer:

they are unbiased but have larger standard errors

Question 6

1 out of 1 points

What is an interaction term? Selected Answer:

Correct Answer:

an additional variable that is the product of 2 other independent variables an additional variable that is the product of 2 other independent variables

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Review Test Submission: Online Quiz 4 - Model Specification ...

Question 7

0 out of 1 points

How can you estimate non-linear function forms using least squares? Selected Answer:

estimate the linear approximation over small ranges at a time

Correct Answer:

transform, such as squaring or cubing, some explanatory variables

Question 8

0 out of 1 points

If you reject the null hypothesis when performing a RESET test, what should you conclude? Selected Answer:

Correct Answer:

relevant variable are omitted and the coefficient estimates of included variables are biased the original model is incorrectly specified and can be improved upon

Question 9

0 out of 1 points

You have estimated a model of two variables shown below.

If x1 decreases by 2 units, what is the expected change in y? Selected Answer:

y decreases by 8 percent.

Correct Answer:

y increases by 8 percent.

Question 10

0 out of 1 points

You estimate 4 different specifications of an econometric model by adding a variable each time and get the following results  Model A

0.3458

0.3285

22.56

Model B

0.3689

0.3394

22.37

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Review Test Submission: Online Quiz 4 - Model Specification ...

Model C

0.4256

0.3916

21.21

Model D

0.4299

0.3911

21.79

Which model appears to be correct specied? Selected Answer:

A

Correct Answer:

C

Question 11

0 out of 1 points

You have estimated the simple regression model below.

What is the elasticity when x1 = 8.49? Selected Answer:

-24.70

Correct Answer:

2.10

Wednesday, 26 February 2020 1:34:00 AM AEDT

← OK

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