Ch - 5 TEst

ECON510-1900-Managerial Economics-SP11-KIM You are logged in as Dhruv Dholakiya (Logout)

UNVA-Online► ECON510-1900-SP11► Quizzes► 5th Assignment► Review of attempt 2

1 Marks: 1

Choose one answer.

a. degrees of freedom.

b. standard error fo the regression.

c. variance.

d. none of the above.

The number of observations minus the number of estimated coefficients in a regression equation is called:

IncorrectMarks for this submission: 0/1.

2 Marks: 1

Choose one answer.

a. Durbin-Watson test

b. t-test

c. F-test

d. R2

Which of the following is a test of the statistical significance of a particular regression coefficient?


5th Assignment

Review of attempt 2

Finish review

Started on Sunday, May 8, 2011, 06:55 PMCompleted on Sunday, May 8, 2011, 07:36 PM

Time taken 40 mins 19 secsMarks 15/35Grade 2.14 out of a maximum of 5 (43%)

of 10ECON510-1900-SP11: 5th Assignment

5/8/2011http://moodle.unva.edu/moodle/mod/quiz/review.php?attempt=59284&showall=true

3 Marks: 1

Choose one answer.

a. When the product being marketed is relatively new.

b. When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive.

c. When the level of economic activity can have a significant effect on the demand for the firm's output.

d. When the product can be packaged with a variety of price and quality combinations.

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?


4 Marks: 1

Choose one answer.

a. 2

b. 0.5

c. 5

d. 1

An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?


5 Marks: 1

Choose one answer.

a. a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables.

b. the intercept term has no economic meaning.

c. there is a good chance of serial correlation and so the equation must be discarded.

d. all the coefficients are statistically significant.

When the R2 of a regression equation is very high, it indicates that

CorrectMarks for this submission: 1/1.

6



Marks: 1

Choose one answer.

a. time series data.

b. panel data.

c. cross-section data.


Data collected on the same observation unit at a number of points in time are called:


7 Marks: 1

Choose one answer.

a. t-test

b. Durbin-Watson test

c. R2

d. F-test

Which of the following is a measure of the explanatory power of the regression model?


8 Marks: 1

Choose one answer.

a. naïve forecasting approach.

b. smoothing technique in forecasting.

c. consensual forecast based on expert opinions.

d. compound growth approach to forecasting.

The Delphi method is a


9 Marks: 1

Choose one answer.

a. six

b. five

A general rule of thumb is that if, after a period of increases, the leading indicator index sustains ________ consecutive declines, a recession (or at least a slowing of the economy) will follow.



c. four

d. three


10 Marks: 1

Choose one answer.

a. empirical forecasting.

b. dumb forecasting.

c. scientific forecasting.

d. naïve forecasting.

Quantitative forecasting that projects past data without explaining the reasons for future trends is called


11 Marks: 1

Choose one answer.

a. determine how well a regression equation can account for dependent variable values.

b. establish confidence intervals for testing regression coefficients.

c. examine the degree of multicollinearity among independent variables.

d. determine whether an identification problem exists.

The F-test is used in forecasting to


12 Marks: 1

Choose one answer.

a. ratio of the regression sum of squares to the sum of the squared errors.

b. ratio of the total sum of squared errors to the sum of squared errors.

c. ratio of the sum of squared errors to the total sum of squared errors.


The coefficient of determination is defined as the




13 Marks: 1

Choose one answer.

a. the range in which the value of the dependent variable is expected to lie with a given degree of probability.

b. the degree of confidence that one has in the equation's R2.

c. the degree of confidence that one has in the regression coefficients.

d. the range in which the actual outcome of a forecast is going to lie.

When using regression analysis for forecasting, the confidence interval indicates


14 Marks: 1

Choose one answer.

a. the regression coefficient is significantly different from zero.

b. the regression coefficient can be used for forecasting.

c. the regression equation is valid.

d. the regression coefficient should be included in the regression equation.

If a regression coefficient passes the t-test, it means that


15 Marks: 1

Choose one answer.

a. regression analysis.

b. trend analysis.

c. moving average method.

d. exponential smoothing.

An explanatory forecasting technique in which the analyst must select independent variables that help determine the dependent variable is called




16 Marks: 1

Choose one answer.

a. 25

b. 1.00

c. 0

d. 0.75

The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?


17 Marks: 1

Choose one answer.

a. 12.5

b. 7.5

c. 10

d. 2.5

The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to:


18 Marks: 1

Choose one answer.

a. regression coefficient values which are not significantly different from zero.

b. insufficient data to estimate egression coefficient values.

c. independent variables in a regression equation whose values are closely related to each other.

d. regression equation variables which exhibit a similar pattern in their values over a number of time periods.

The problem of autocorrelation refers to


19 The use of a dummy variable in regression analysis indicates



Marks: 1 Choose one answer.

a. the use of hypothetical data.

b. that insufficient data is available for the analysis.

c. that a variable is expected to either have or not have an impact on a dependent variable.

d. that a researcher does not really know what to include in the equation.


20 Marks: 10

Answer: a. Refer to Scenario 1. What is the t - statistic for the slope coefficient?

Ans: UPWARD

b. Refer to Scenario 1. Is the slope coefficient statistically different from zero? explain concisely with your calculation.

Scenario 1: The demand model relating the quantity of good XYZ sold (QXYZ) to the price of good (PXYZ) is reported below:

QXYZ = 4.46 + .304 PXYZ

Coefficient Standard Error4.46 3.04.304 .3243

Analysis of Variance:Source DF Sum of SquaresRegression 141.9Residual 3718.9Total 24

a. Refer to Scenario 1. What is the t-statistic for the slope coefficient? b. Refer to Scenario 1. Is the slope coefficient statistically different from zero? explain concisely with your calculation. c. Refer to Scenario 1. What is the total sum of squares?



ANS: YES, Slop coefficient statistically different from zero. I had a confusion here???

c. Refer to Scenario 1. What is the total sum of squares?

Ans: 3859.9 or 1929.95

21 Marks: 1

Choose one answer.

a. R2

b. the standard errors of the coefficients

c. the t-test

d. the magnitudes of the coefficients

Which of the following indicators will always improve when more variables are added to a regression equation?


22 Marks: 1

Choose one answer.

a. -1.5, elastic

b. 1.5, inelastic

c. 12, elastic

d. 120, elastic

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?


23 Marks: 1

Answer the following question(s) based on the following regression equation (Standard errors in parentheses, n = 150): QD = 1000 - 50PA + 10PB+ .05I,

(20) (7) (.04) where QD = quantity demanded of good A, PA = price of good A, PB = price of a competing good B, and I = per capita income.



Choose one answer.

a. P

b. PC

c. I

d. Should be applied for all.

For which of the following variables should a "two tail" t-test be applied?


24 Marks: 1

Choose one answer.

a. a regression equation that has the highest R2

b. a regression equation that has the least number of dummy variables

c. a regression equation that passes the F-test

d. a regression equation whose explanatory variables all pass the t-test

From a management policy perspective, which regression result is the most useful?


25 Marks: 1

Choose one answer.

a. a statistical technique for creating functional relationships among variables.

b. a statistical technique for determining the true values of variables.

c. a statistical technique for estimating the best relationship between one variable and a set of other selected variables.

d. None of the above

Regression analysis can best be described as


26 Marks: 1

R2 is a statistical measure which



Choose one answer.

a. tests the true value of a variable.

b. determines how well an equation can estimate the relationship between one variable and a set of other variables.

c. determines how important one variable is in explaining the value of another variable.

d. All of the above


Finish review

You are logged in as Dhruv Dholakiya (Logout)

ECON510-1900-SP11



Ch - 5 TEst

Documents

Transcript of Ch - 5 TEst