Final Exam BUSN 5000 || A+ Certified.
The ______ captures how the population average of one random variable varies with the values
of another random variable. correct answers conditional expectation function
If we say E(y|x)=β1+β1x, where β0 and β1 solve the population least-squares problem, then the
CEF is the population regression _____ and β0 and β1 are population regression _____. correct
answers function, coefficients
The population regression function provides the best ______ to the CEF. correct answers linear
approximation
The population regression function provides the best _____ of the dependent variable, given the
explanatory variables correct answers linear predictor
yi=β0+β1xi1+ui,i=1,...,N.(1) --> The coefficient β1 measures the _____ in y _____ with a _____
in x1, holding all of the unobservables constant. correct answers change, associated, unit change
If β0 and β1 solve the population least-squares problem their values ______ the expected value
of the _____ difference between the dependent variable and the CEF. correct answers minimize,
square
The value of β1 that solves the population least-squares problem is: correct answers
β1=cov(xi1yi)/E(x2i1)
The OLS estimator for β1 can be obtained by plugging in the _____ of xi and yi for their ______
and plugging in another _____ for each outer expectation. correct answers sample averages,
population average, sample average
, If there were more than one x in (1), then the formula for β1 would be the _____, except xi1
would be replaced with the _____ from a regression of xi1 on the other xs. correct answers same,
residuals
The ______ theorem says you can control for other explanatory variables in estimating the effect
of an x on y by either including the other variables directly or regressing y on the ______ from a
regression of x on the other variables. correct answers Frisch-Waugh-Lovell, residuals
When the PRF includes more than one x, we say that β1 measures the _____ effect of x1
(without necessary giving a causal interpretation). correct answers partial
If E(ui|xi1)=0 in (1), xi1 is _____ of ui and the sampling error of β^1 equals ______ on average,
which implies that β^1 is ______. correct answers mean independent, zero, unbiased
If E(ui|xi1)=0 in (1), the sampling error of β^1 converges to _____ and β^1 is ______. correct
answers zero, consistent
yi=β0+β1xi1+β2xi2+ui,,i=1,...,N,(2) --> If you omit xi2 from (2), β^1 will be unbiased only if
β2= ______ or xi1 and xi2 are ______. correct answers zero, uncorrelated
If you omit xi2 from (2), β^1 will be biased ______ if β2 and cov(xi1,xi2) have the same
______. correct answers upward, sign
If xi1 is education and xi2 is labor market experience, and you omit xi2 from (2), then β^1 will
be biased ______ because β2 is _____ and cov(xi1,xi2) are _____ correlated. correct answers
downward, positive, negatively
Let's say you don't omit xi2, but it is measured with error. Then β^2 will be ______ . (unbiased/
biased down/ biased up) correct answers biased down
The ______ captures how the population average of one random variable varies with the values
of another random variable. correct answers conditional expectation function
If we say E(y|x)=β1+β1x, where β0 and β1 solve the population least-squares problem, then the
CEF is the population regression _____ and β0 and β1 are population regression _____. correct
answers function, coefficients
The population regression function provides the best ______ to the CEF. correct answers linear
approximation
The population regression function provides the best _____ of the dependent variable, given the
explanatory variables correct answers linear predictor
yi=β0+β1xi1+ui,i=1,...,N.(1) --> The coefficient β1 measures the _____ in y _____ with a _____
in x1, holding all of the unobservables constant. correct answers change, associated, unit change
If β0 and β1 solve the population least-squares problem their values ______ the expected value
of the _____ difference between the dependent variable and the CEF. correct answers minimize,
square
The value of β1 that solves the population least-squares problem is: correct answers
β1=cov(xi1yi)/E(x2i1)
The OLS estimator for β1 can be obtained by plugging in the _____ of xi and yi for their ______
and plugging in another _____ for each outer expectation. correct answers sample averages,
population average, sample average
, If there were more than one x in (1), then the formula for β1 would be the _____, except xi1
would be replaced with the _____ from a regression of xi1 on the other xs. correct answers same,
residuals
The ______ theorem says you can control for other explanatory variables in estimating the effect
of an x on y by either including the other variables directly or regressing y on the ______ from a
regression of x on the other variables. correct answers Frisch-Waugh-Lovell, residuals
When the PRF includes more than one x, we say that β1 measures the _____ effect of x1
(without necessary giving a causal interpretation). correct answers partial
If E(ui|xi1)=0 in (1), xi1 is _____ of ui and the sampling error of β^1 equals ______ on average,
which implies that β^1 is ______. correct answers mean independent, zero, unbiased
If E(ui|xi1)=0 in (1), the sampling error of β^1 converges to _____ and β^1 is ______. correct
answers zero, consistent
yi=β0+β1xi1+β2xi2+ui,,i=1,...,N,(2) --> If you omit xi2 from (2), β^1 will be unbiased only if
β2= ______ or xi1 and xi2 are ______. correct answers zero, uncorrelated
If you omit xi2 from (2), β^1 will be biased ______ if β2 and cov(xi1,xi2) have the same
______. correct answers upward, sign
If xi1 is education and xi2 is labor market experience, and you omit xi2 from (2), then β^1 will
be biased ______ because β2 is _____ and cov(xi1,xi2) are _____ correlated. correct answers
downward, positive, negatively
Let's say you don't omit xi2, but it is measured with error. Then β^2 will be ______ . (unbiased/
biased down/ biased up) correct answers biased down
