Econometrics Final Questions 84 Correctly Answered Questions Latest Update

23. There are n-1 degrees of freedom in Ordinary Least Square residuals. a. True b. False {Ans: b. false}13. The term _____ refers to the problem of small sample size. a. micronumerosity b. multicollinearity c. homoskedasticity d. heteroskedasticity {Ans: A.}True or False 16. Whenever the dependent variable takes on just a few values it is close to a normal distribution. {Ans: False}4. Which of the following is true of R2? a. R2 is also called the standard error of regression. b. A low R2 indicates that the Ordinary Least Squares line fits the data well. c. R2 usually decreases with an increase in the number of independent variables in a regression. d. R2 shows what percentage of the total variation in the dependent variable, Y, is explained by the explanatory variables. {Ans: D.}15. The Gauss-Markov theorem will not hold if _____. a. the error term has the same variance given any values of the explanatory variables b. the error term has an expected value of zero given any values of the independent variables c. the independent variables have exact linear relationships among them d. the regression model relies on the method of random sampling for collection