Deck 19: Carrying Out an Empirical Project

Question 1

Which of the following statements is true of stepwise regression?

A)In a stepwise regression, the dependent variable is regressed on each independent variable individually with an attempt to understand the effect of each independent variable on the dependent variable.
B)In a stepwise regression, the dependent variable is regressed on different combinations of the independent variable with an attempt to come up with the best model.
C)In a stepwise regression, the dependent variable can take up binary values only while the explanatory variables can take up quantitative values.
D)In a stepwise regression, the dependent variable can take up quantitative values while the explanatory variables can take up only binary values.

Answer 1

B

Question 2

​Econlit is an online search service which allows users to do a comprehensive search of almost all economics journals.

Answer 2

True

Question 3

Which of the following statements is true?

A)If standard errors are too large or too small, they should be reported in scientific notation.
B)If coefficients are too large or too small, they should be reported in scientific notation.
C)While reporting figures, the number of digits after decimals should be limited.
D)The list of references used should be reported in the appendix.

Answer 3

C

Question 4

A good research question should not be backed by time series data.

Question 5

Which of the following highlights a requirement of a good instrumental variable?

A)It should be included in and endogenous to the equation of interest.
B)It should be included in and exogenous to the equation of interest.
C)It should be omitted from and exogenous to the equation of interest.
D)It should be omitted from and endogenous to the equation of interest.

Question 6

​The main assumption of OLS for any model is:

A)​to check whether the error term is uncorrelated with the response variable.
B)​to check whether the error term is correlated with the explanatory variables.
C)​to check whether the error term is uncorrelated with the explanatory variables.
D)to check whether the error term is correlated with the response variable.

Question 7

Which of the followings statements is true?

A)The title of a research paper should be mentioned only in the introduction section.
B)The title page should not include any other information except the title of the research paper.
C)Graphs and tables should be included in the main body only.
D)All equations should begin on a new line and should be numbered consecutively.

Question 8

Time series data should be stored:

A)with the earliest time period listed as the first observation, and the most recent time period as the last observation.
B)with the earliest time period listed as the last observation, and the most recent time period as the first observation.
C)with the time period in which the concerned variable takes the highest value listed as the first observation, and the time period in which the concerned variable takes the lowest value as the last observation.
D)with the time period in which the concerned variable takes the lowest value listed as the first observation, and the time period in which the concerned variable takes the highest value as the last observation.

Question 9

​Which of the following is true of the "Introduction" section while writing a paper?

A)​It describes the general approach to answering the questions that have posed.
B)​It contains a few equations that one estimate and presents in the results section of the paper.
C)​It describes the data used in the empirical analysis.
D)​It states the basic objectives of the study and explains its importance.

Question 10

Which of the following is a characteristic of a good research question?

A)A good research question should have policy implications.
B)A good research question should be constrained to macroeconomics.
C)A good research question should be backed by available information.
D)A good research question should be subjective and not objective.

Question 11

Which of the following is the best approach to code the missing values in a data set?​

A)​Indicate missing values with nonnumeric characters.
B)​Set any numerical codes for missing values to some other character.
C)​Enter 999 or -1 as the missing values.
D)​Do not enter any value.

Question 12

Which of the following is a characteristic of a good research paper?

A)A good research paper should contain a review of relevant literature.
B)A good research paper should not have any published precedents.
C)A good research paper should always be useful for policy implications.
D)A good research paper should have more than one author.

Question 13

Which of the following statements is true?

A)A model shows the estimated parameters of the explanatory variables.
B)A model represents a population relationship.
C)In an empirical paper, the estimation methods should be discussed before specifying a model.
D)The methods for estimating a model are same as the model itself.

Question 14

Which of the following statements is true?

A)If a model has several explanatory variables and several variations to the general model are to be presented, it is better to report the results in an equation form, rather than a tabular form.
B)If a model has several explanatory variables and several variations to the general model are to be presented, it is better to report the results in a tabular form, rather than an equation form.
C)The adjusted R-squared should always be listed in the result section of a research paper, while the R-squared may or may not be listed.
D)The number of observations for each equation should always be listed in the result section of a research paper, while the R-squared may or may not be listed.

Question 15

Which of the following statements is true?

A)To carry out OLS estimation, it is necessary that the error terms should be correlated with the explanatory variables.
B)Measurement error and simultaneity are potential sources of endogeneity.
C)While entering data for a regression analysis, qualitative explanatory variables should be assigned numerical values.
D)AR models are best suited for ordered responses.

Question 16

Which of the following statements is true?

A)Graphs should be avoided while introducing a research paper's topic.
B)The introduction to a research paper should be longer than the conclusion to the research paper.
C)The summary of a research paper can be presented in the introduction of a research paper.
D)Statistics should be avoided in introductions for research papers.

Question 17

Which of the following statements is true of an appropriate data set?

A)An appropriate data set should be collected from government registered websites.
B)An appropriate data set should have enough controls to do a reasonable ceteris paribus analysis.
C)An appropriate data set should not have time series units.
D)An appropriate data set should not be based on surveys.

Question 18

Which of the following statements is true?

A)OLS is a model, whereas feasible GLS is an estimation method.
B)OLS is an estimation method, whereas feasible GLS is a model.
C)Both OLS and feasible GLS are models.
D)Both OLS and feasible GLS are estimation methods.

Question 19

The most flexible way to obtain data in electronic form is as a standard _____ file.

A)PDF
B)WMV
C)text (ASCII)
D)PPTX

Question 20

Which of the following correctly identifies an advantage of entering data in a spreadsheet rather than a text file?

A)Data in various websites is more often available as spreadsheets than as text files.
B)Different observations are more likely to be run together in spreadsheets than in text files.
C)Spreadsheets are readable on most computers, whereas text files are not.
D)Spreadsheets allow manipulation of data, whereas text files do not.

Question 21

Historical data sets are available only in printed form.

Question 22

For panel data, ​it is best if all the years for each cross-sectional observation are adjacent and in chronological order.

Question 23

Instrumental variables can be used to solve misspecification errors related to omitted variables.

Question 24

Sensitivity analysis is restricted to natural sciences.

Question 25

The practice of data mining is consistent with the assumptions made in econometric analysis.