Question

In: Economics

1.In a multiple regression model, the error term α is assumed to be a random variable...

1.In a multiple regression model, the error term α is assumed to be a random variable with a mean of:

a. Zero

b. ‐1

c. 1

d. Any value

2. In regression analysis, the response variable is the:

a. Independent variable

b. Dependent variable

c. Slope of the regression function

d. Intercept

3. A multiple regression model has:

a. Only one independent variable

b. More than one dependent variable

c. More than one independent variable

d. At least two dependent variables

4. A nonparametric version of the parametric analysis of variance test is the:

a. Kruskal‐Wallis test

b. Mann‐Whitney‐Wilcoxon test

c. Sign test

d. Wilcoxon signed‐rank test

5.When ranking combined data in a Wilcoxon signed‐rank test, the data that receives a rank of 1 is the:

a. Lowest value

b. Highest value

c. Middle value

d. Average of the highest and the lowest of value

Expert Solution

ANSWERS:

1.A) ZERO

EXPLAINATION : An important assumption of econometrics is zero average of error term. The reason is that mean value of deviations of one variable (Y) corresponding to a given variable (X) should be zero.

2. B) Dependent variable.

Explanation: Dependent variable is also known as Response variable in economatrics. Also it is response variable (Y) the value of which depends on the changes in independent variable (X). Example

the value of Y depends on the value of X.

3. d) more the one independent variables.

Explanation : A multiple regression equation has more than one independent variables as shown in below equation

Therefore a multiple regression equation shows the relationship between a dependent variable and more the one independent variable.

4. a) Kruskal-wallis test.

Explanation: this non parametric analysis because it is on One Way ANOVA test.

Rahul Sunny answered 2 years ago

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