1.

In the regression model Yt=b0+b1Xt , t=1,2,…,n where y=0, the OLS estimator of b1 is

B.true
C. B1=mean(Y0)=0
D .None of these
2.Which one of the following is examined by looking at a goodness of fit statistic
a) How well the sample regression function fits the population regression function
b) How well the population regression function fits the data
c) How well the population regression function fits the sample regression function
d) How well the sample regression function fits the data
3.Suppose that the following regression is estimated using 27 quarterly observations:
Yt=b1+b2x2+b3x3.What is the appropriate critical value for a 2-sided 5% size of test of
H0:b3=1?
a) 2.06
b) 1.71
c) 1.96
d) 1.64
4.Someone wants to test whether the market decline affected trading volume.He
selected a sample of 500 companies and collected data on the total annual volume
for one year prior to the decline and for one year following the decline.What is the
sethypothesis that Someone is testing?
a) H0:ud=uf vs H1:ud≠uf
b) H0:ud≠uf vs H1:ud=uf
c) H0:ud=uf vs H1:ud
d) H0:ud=uf vs H1 ud>uf
5.What is the meaning of the term “heteroscedasticity”?
a) The variance of the errors is not constant
b) The variance of the dependent variable is not constant
c) The errors have non-zero mean
d) The errors are not linearly independent of one another
6.If the value of the independent is zero, then the expected value of the dependent
variable would be equal to:
a) The error term
b) The slope coefficient
c) The residual
 d) The intercept coefficient
7.obtaining a negative R-square probably means that an interxept was omitted from
the specification
Верно
Неверно
8.If a two-tailed hypothesis test has a 5% probability of rejecting the null hypothesis
where the null is true, it is most likely that the
a) Probability of a type I error is 2.5%
b) Significance level of the test is 5%
c) Power of the test is 95%
d) Critical value is 0%
9.Ordinary least squares refers to the process that
a) Maximizes the number of independent variables
b) Produces sample regression coefficients
c) Minimizes the sum of the squared error terms
d) Minimizes the number of independent variables
10.High collinearity is not a problem if
a) No bias is created
b) The variance of the error term is small
c) R-square is high
d) None of these
11.Suppose we specify that y=a+bx+c1*male+c2*female+d1*left+d2*center+d3*right
Where left, center and right refer to the three possible orientation.A variable Fringe
is created as the sum of left and right.Suppose we regress y on an intercept
Male,Left and Center.The base category is
a) None of these
b) A female in the left
c) Male on the left
d) A female on the right
12.Multicollinearity occurs whenever
a) There is a close nonlinear relationship among the independent variable
b) The independent variables are highly orthogonal
c) There is a close linear relationship among the independent variables
d) The dependent variable is highly correlated with the independent variable
13.Suppose that if the null that beta equals one is true a test statistic you have
calculated is distributed as a t-statistics with 17 degrees of freedom.What critical
value cuts off 55of the upper tail of this distribution?
 a) 2.11
b) 1.96
c) 1.74
d) 1.65

14) The residual from a standard regression model is defined as

Bыберите один OTBET:
a. The difference between the fitted value, y-hat, and the mean, y-bar
b. The difference between the accrual value, y, and he fitted value, y-hat
c. The difference between the actual value, y, and the mean, y-bar
d. The square of the difference between the fitted value, y-hat, and the mean, y-bar

15) The error term represents the portion of:

Bыберите один OTBET:
a. The independent variables that are explained by the dependent variable
b. The dependent variable that is explained by the independent variable
C. The dependent variable that is explained by the error in the independent variable
d. The dependent variable that is not explained by the independent variables but could possibly be
explained by adding additional independent variables

16) The first step in the process of hypothesis testing is to state the hypotheses
Bыберите один OTBET:
BЕРНО
HЕBЕРHO
17) An analyst performs two simple regressions. first regression analysis has an R-
squared of 0.40 and a beta coefficient of 1.2. the second regression analysis has an
R-squared of 0.77 and a beta coefficient of 1.75. which of the following statements is
most accurate?
a. The first regression equation has more explaining power than the second regression equation O
b. The beta coefficient of the second regression indicates that this regression has more explaining
power than the first
c.The R-squared of the first regression indicates that there is a 0.40 correlation between the
independent and the dependent variables.
 d. The second regression equation has more explaining power than the first regression
equation
18) You have an estimate 1.75 of a slope coefficient which you know is distributed
normally with unknown mean beta and known variance 0.25. you wish to test the null
that beta=1 against the alternative that beta>1 at the 10% significance level. You
should_ the null. If you had used a 5% significance level you would___the bull.
a. Reject, reject
b. Reject, do not reject
C. None of these
d. Do not reject, do not reject
19) Which of the following statements regarding multicollinearity is incorrect?
a. if the t-statistics for the individual independent variables are insignificant, yet the F-statistic is
significant, this indicates the presence of multicollinearity
b. Multicollinearity makes it difficult to determine the contribution to explanation of the
dependent variable of an explanatory variable
C. Multicallinearity may be a problem even if the multicollinearity is not perfect
d. Multicollinearity may be present in any regression model
20) Suppose you have estimated wage=5+3education +Zgender, where gender is one
for male and zero for female. If gender had been one for female and zero male, this
result would have been
a. Unchanged
b. Wage=7+3education+2gender
c. Wage=7+3education-2gender
d. Wage=5+3education-2gender
21) James believes that the average return on equity in the utility industry, u, is
greater than 10%. What is null and alternative hypothesis for this study?
a. HO: u0.10 vs H1: uz 0.10
b. HO: u20.10 vs H1: u<0.10
C HO: u=0.10 vs H1: u>0.10
H 0 : µ ≤ 0,10 по сравнению с H a : µ> 0,10.

22) standard error of regression is

a. an estimate of the square root of the variance of the error term
b. the square root of the variance of the error term
c. the square root of the variance of the dependent variable
d. the square root of the variance of the predictions of the dependent variable
23) The dummy variable trap occurs when
a. None of the above
b. The intercept is omitted
c. There is more than one type of category using dummies
d. A dummy is not defined as zero or one
24) Given of explained squares are 1,025 and sum of residual squares are 925, Find
the total sum of squares:
a. 1,108
b. 100
c. 0.9024
d. 1,950
25) Suppose we specify that
y=a+bx+c1*male+c2*female+d1*left+d2*center+d3*right+u, where left, center and
right refer to the three possible orientation. A variable Fringe is created as the sum
of left and right. Which of the following creates a dummy variable trap?
a. Left, center and right
b. None of these
c. Male, left and center
d. Male and left
26) What is the appropriate interpretation of a slope coefficient estimate equal to 10?
a. The predicted value of independent variable when the dependent variable is zero is 0.1
b. For every one unit change in the independent variable the model predicts that the dependent
variable will change by 0.1 units
c For every on unit change in the independent variabie the model predicts that the dependent
variable will change by 10 units
d. The predicted value of the dependent variable when the independent variable is zero is 10
27) A p-value 0.02% means that a researcher:
a. Cannot reject the null hypothesis at either the 5% or 1% significance level
b. Accept always the null hypothesis
c. Can reject the null hypothesis at the 5% significance level but cannot reject at the 1% significance
level
d. Can reject the null hypothesis at both 5% and 1% significance level.
28) In theory, the sample could be larger than the population
BЕРHO
HЕВЕРHO
29) The PRF is a description of the process thought to be generating the data
BЕРHO
HЕВЕРHO
30) type l error is the probability of rejecting the null hypothesis when the null
hypothesis is false.
BЕРHO
HЕВЕРHO
31) The sample of per square foot sales for 100 UK retailers in January 2019 is an
example of:
a. Unbiased data
b. Panel data
c. Cross-sectional data
d. Time-series data
32) In the regression specification y=a+bx+u
a. Y is called the independent variable and x is the regressor
b. Y is called the independent variable and x is the regressand
c. Y is called the dependent variable and the regressor
d. Y is called the dependent variable x is the regressand
33) A type II error:
a.Fails to reject a false null hypothesis
b. Rejects a false null hypothesis
c Fails to accept a false null hypothesis
d. Rejects a true null hypothesis
34) OLS minimises the sum the squares of the vertical distances from the points to
the line
BЕРHO
HЕВЕРHO
35) An analyst is asked to calculate standard deviation using monthly returns over
the last five years. These data are:
a. Cross-sectional data
b. Time series data
c Panel data
d. Systematic sampling data
36) you data produce the regression result y=8+5x. if the x values were scaled by
multiplying them by 0.5 the new intercept is
OTBET:_10.5____
37) The following equation is perfectly collinear:
y=bx+c*male+d*femlae+f*weekday+g*weekend
BЕРHO
HЕВЕРHO
38) Which of the following are alternative names for the independent variable
(usually denoted by x) in linear regression analysis? i) the regressor ii) the
regressand iii) the causal variable iv) the effect variable
a. (i) and (iii)
b. (i),(ii) and (iii)
C.(ii ) and (iv)
d. (i), (ii). (iii) and (iv)
39) Suppose we specify that
y=a+bx+c1*male+c2*female+d1*left+d2*center+d3*right+u, where left, center and
right refer to the three possible orientation. A variable Fringe is created as the sum
of left and right. Suppose we regress y on an intercept Male, Left and Center. The
intercept is interpreted as the intercept of a
a. Female
b. A female on the right
C. A female in the left
d. Male
40) Which one of the following distributions is described entirely by the degrees of
freedom?
a. Normal distribution
b. Lognormal distribution
C. Students' t- distribution
d. Gamma distribution
41) The dummy occurs when
a. There is more than one type of category using dummies
b. The intercept omitted
c. None of the above
d. A dummy is not defined as zero one
42)As the sample size increase, the variance of the sample mean:
a. a.Strays constant
b. Increases
c. Decreases
d. Not enough information
43)If the value of the independent variables is zero, then the expected value of the
dependent variable would be equal to:
a. The error terms
b. The residual
c. The intercept coefficient
d. The slope coefficient
44) Suppose that t-test that the true value of the intercept coefficient is zero results
in non-rejection. What would be appropriate condition?
a. Re-compute the test statistics
b. Retain the intercept
c. The regression line is running exactly through the origin
d. Drop the intercept and re-run the regression
45)Which of the following are alternative names for the dependent variables (usually
denoted by y) in linear regression analysis? i) the regressand ii) the regressor iii)the
explained variable iv) the explanatory variable
(i), (ii), (iii) and (iv)
(i), (ii) and (iii)
(i) and (iii)
(ii) and (iv)
46) If the probability of a Type I error decrease, then the probability of:
a. Incorrectly rejecting the null increase
b. Incorrectly accepting the null decrease
c. A type II error increase
d. A type II error decrease
47) When is the t-distribution the appropriate distribution to use? The t-distribution
is the appropriate distribution to use when constructing confidence intervals based
on:
a. No right answer
b. Small samples from populations with unknown variance that are at least approximately
normal
c. Small samples from populations with known variance that are at least approximately
d. Large samples from populations with known variance that are non-normal

48)Based on Student's t-distribution, the 95% confidence interval the population

mean based on a sample of 40 interest rates with a sample mean of 4% ,and a
sample standard deviation of 15% is:
a. 1.261% to 6.739%
b. -0.851% to 8.851%
c. No right answer
d. -0.794% to 8.794%
49) If we fail to reject the null hypothesis when it is false, what type of error has
occurred?
a. Type III
b. Type II
c. Type I
d. No error
50) Given a random variable with a mean of 10% deviation of 14%, what is a 95%
confidence interval for the return next year?
a. 24% to 83%
b. -17.44% to 37.44%
c. -17% to 38%
d. -4% to 24%
51) Which of the follawing statements is true concerning the standard regression
model?:
a.Y has a probability distribution
b. The disturbance term is assumed to be orrelated with x
C. For an adeguate model, the residual will be zero for all sample data
d. X has a probability distribution
52) If the probability of a Type I error decreases, then the probability of:
a. A type II error increases
b. Incorrectly accepting the null decreases
C.A Type Il error decreases
d. Incorrectly rejecting the null increases
53) The confidence intercal for a parameter is calculated as:
a. Point estimate +/- standard error
b. Point estimate +/- critical value x standard error
C. Point estimator x critical value +/- standard error
d. No right answer
54) A type l error is the probability of rejecting the null hypothesis when the null
hypothesis is false.
BЕРHO
HЕВЕРHO
55) you data produce the regression result y=8+5x
Answer: 10.5
56) The Regression result are presented …500 stock is closest to
A.0.710
B.0.900
C.0.522
D.0.046
57) the standard error of regression is
a. the square root of the variance of the dependent variable
b. the square root of the variance of the predictions of the dependent variable
C. an estimate of the square root of the variance of the error term
d. the square root of the variance of the error term
58) Which of the following is the correct sequence of events for testing a
hypothesis?
a. No steps required
b. State the hypothesis, make a decision formulate the decision rule, compute the test
statistic, and select the level of significance
c.State the hypothesis, formulate the decision rule, compute the test statistic, select the
level of significance, and make a decision
d. State the hypothesis, select the level of significance, formulate the decision rule,
compute the test statistic, and make a decision

59) The regression results are presented in the following table.Based on these results which
represents the regression equation?
a. 0.681+0.021(MKT)+0.04(IND) +0.139(FORT)
b. 0.522+0.046(MKT)+0.7102(IND)+0.9(FORT)
c.0.43+3.09(MKT)+2.61(IND)+1.70(FORT)
d. 1.21+0.015(MKT)+0.2725(IND)+0.5281(FORT)