Please choose the correct answer for each question: 1. When the explanatory vari
ID: 3070390 • Letter: P
Question
Please choose the correct answer for each question:
1. When the explanatory variable is a binary variable, the null hypothesis that the two population means are the same can be tested by:
a. Testing that the estimate coefficient on the binary variable is less than the estimated constant.b.
b. Testing that the estimated constant is 0.
c. Testing that the estimated coefficient on the binary variable is 0.
d. Testing that the estimate coefficient on the binary variable and the estimated constant are the same.
2. In practice, if the error terms are homoscedastic:
a. The formulas based on heteroskedastic error terms will give the exact same values as formulas based on homoscedastic error terms.
b. The formulas based on heteroskedastic error terms will give valid inference.
c. The formulas based on heteroskedastic error terms will give invalid inference.
d. The formulas based on heteroskedastic error terms cannot be calculated.
3. A 95% confidence interval is constructed by:
a. Adding and subtracting 1.96 times the standard error from the true value.
b. Adding and subtracting 1.96 times the standard error from the estimated value.c.
c. Adding and subtracting 1.96 times the estimate from the standard error.
d. Adding and subtracting 1.96 times the standard error from the difference between the estimated value and the hypothesized value.
a. Testing that the estimate coefficient on the binary variable is less than the estimated constant.b.
b. Testing that the estimated constant is 0.
c. Testing that the estimated coefficient on the binary variable is 0.
d. Testing that the estimate coefficient on the binary variable and the estimated constant are the same.
Explanation / Answer
ANSWERS
1.) c.). Testing that the estimated coefficient on the binary variable is 0.
2.) c.) The formulas based on heteroskedastic error terms will give invalid inference.
3.) b.) Adding and subtracting 1.96 times the standard error from the estimated value.
2.) c.) The formulas based on heteroskedastic error terms will give invalid inference.