ECO 391 Exam 3 || Answered Perfectly 100%.
False correct answers T/F: The number of degrees of freedom a regression has, holding all else
constant, will increase as the number of independent variables included in the regression
increase.
True correct answers T/F: If we create a 95% confidence interval for regression coefficient and
the confidence interval does not contain 0 as s possible value for the coefficient then the
coefficient will be statistically different from 0.
True correct answers T/F: Stochastic implies a randomly occurring relationship.
False correct answers T/F: Adding another independent variable (x) will always increase the
standard error of the regression.
False correct answers T/F: As a general rule when working with data, if an observation is missing
data on some variable we should just fill in the data with our best guess as to what the value
would logically be for the missing variable.
145 correct answers Suppose we run an OLS regression and estimate the following.
Y= B0+B1X1+E
b0= 10.00
b1=9.00
Given these estimates what would predict y to be for X=15.
Strong Negative correct answers -1 to -.07
, Moderate Negative correct answers -0.7 to -0.3
Weak Negative correct answers -0.3 to 0
Weak Positive correct answers 0 to 0.3
Moderate Positive correct answers 0.3 to 0.7
Strong Positive correct answers 0.7 to 1
This regression cannot be estimated due to misspecification of the model and too many
independent variables and we would have a negative number of degrees of freedom. correct
answers Suppose we wished to estimate the effect of being unemployed on a person's alcohol
consumption. To do this we collect data on 50 people and include their demographic info, a full
set of state dummies for the US and their current employment status as dependent variables. In
total we have 63 independent variables. Given this info, which statement describes what we
would likely find.
The model for regression 1 fits the data best because the adjusted R^2 is higher. correct answers
Suppose we run two regressions on the same data and using the same dependent variable. The
first regression includes 8 independent variables and has an adjusted R2 of 0.7428. The second
has 10 total independent variables (8 are the same as the first regression) and has an adjusted R2
of 0.7283. Which statement is most accurate?
n-k-1 correct answers How to find degrees of freedom
H0: equal 0
HA: not equal 0 correct answers State the null & alternative hypothesis
False correct answers T/F: The number of degrees of freedom a regression has, holding all else
constant, will increase as the number of independent variables included in the regression
increase.
True correct answers T/F: If we create a 95% confidence interval for regression coefficient and
the confidence interval does not contain 0 as s possible value for the coefficient then the
coefficient will be statistically different from 0.
True correct answers T/F: Stochastic implies a randomly occurring relationship.
False correct answers T/F: Adding another independent variable (x) will always increase the
standard error of the regression.
False correct answers T/F: As a general rule when working with data, if an observation is missing
data on some variable we should just fill in the data with our best guess as to what the value
would logically be for the missing variable.
145 correct answers Suppose we run an OLS regression and estimate the following.
Y= B0+B1X1+E
b0= 10.00
b1=9.00
Given these estimates what would predict y to be for X=15.
Strong Negative correct answers -1 to -.07
, Moderate Negative correct answers -0.7 to -0.3
Weak Negative correct answers -0.3 to 0
Weak Positive correct answers 0 to 0.3
Moderate Positive correct answers 0.3 to 0.7
Strong Positive correct answers 0.7 to 1
This regression cannot be estimated due to misspecification of the model and too many
independent variables and we would have a negative number of degrees of freedom. correct
answers Suppose we wished to estimate the effect of being unemployed on a person's alcohol
consumption. To do this we collect data on 50 people and include their demographic info, a full
set of state dummies for the US and their current employment status as dependent variables. In
total we have 63 independent variables. Given this info, which statement describes what we
would likely find.
The model for regression 1 fits the data best because the adjusted R^2 is higher. correct answers
Suppose we run two regressions on the same data and using the same dependent variable. The
first regression includes 8 independent variables and has an adjusted R2 of 0.7428. The second
has 10 total independent variables (8 are the same as the first regression) and has an adjusted R2
of 0.7283. Which statement is most accurate?
n-k-1 correct answers How to find degrees of freedom
H0: equal 0
HA: not equal 0 correct answers State the null & alternative hypothesis
