Econometrics Chapter 3 |21 Questions| With Correct Answers.

Consider the following regression equation: Y = a +b X + c Z + u. What does b imply? a. b measures the ceteris paribus effect of X on u. b. b measures the ceteris paribus effect of X on Y c. b measures the ceteris paribus effect of Y on X. d. b measures the ceteris paribus effect of X on Z . {Ans: b}Var ( b(j) hat) = (sigma ^ 2) / SST (j), where j is the subscript, ignores the error variance increase because it treats both regressors as: a. independent b. dependent c. random d. nonrandom {Ans: d}True or False: When one randomly samples from a population, the total sample variation in xj decreases without bound as the sample size increases. {Ans: False}The problem of small sample size. a. heteroskedasticity b. micronumerosity c. multicollinearity d. homoskedasticity {Ans: b}Which of the following is true of BLUE? a. It is a rule that can be applied to any one value of the data to produce an estimate. b. An estimator is linear if and only if it can be expressed as a linear function of the data on the dependent variable. c. It is