In the stochastic regression model Yi-prt 2X2i + 3X3i +ui, if X2i and X3i variab
ID: 1129779 • Letter: I
Question
In the stochastic regression model Yi-prt 2X2i + 3X3i +ui, if X2i and X3i variables are correlated, you have A) Multicollinearilty B) Homoscedasticity C) Autocorrelation D) Residuals In the stochastic regression model Yt-B1+ 2X2t + 3X3t +ut , when successive residuals (ut and ut-1) are correlated you have A) Multicollinearilty B) Homoscedasticity C) Autocorrelation D) Residuals 2. 3. In a linear regression equation of the form Y = a + BX + u, the intercept parameter shows a. the amount that Y changes when X changes by one unit b. the amount that X changes when Y changes by one unit c. the value of Y when X is zero d. the value of X when Y is zero 4. In a linear regression equitation of the form Y-.XPeu, the slope parameter shows b. the percentage change in Y for a 1 percentage change in X c. the elasticity of Y with respect to X d. the elasticity of X with respect to Y 5. To test t he null hypothesis that the value of a particular regression parameter is 0.90, one uses a. the F-statistic b. the t-statistic c. R2-statistic d. the standard error statistic 6. To test whether the overall regression model is significant, one uses a. the F-statistic b. the t-statistic c. R2-statistic d. the standard error statisticExplanation / Answer
1. Option a: When one of the variable is affected by any changes in another variable
2. Option c: For example when yesterday sales influence today’s sales
3. Option c: It is the constant value when all of the other becomes zero
4. Option c: It tells how y behaves when x gets changed
5. Option b: It tests whether a parameter estimated is significantly difference from zero or by chance
6. Option a: It tells about significance of the model