Question 1

The test of shifting the base is called&#10;A)unit test&#10;B)time reversal test&#10;C)circular test&#10;D)none of the above

Accepted Answer

The circular test is used to check the consistency of index numbers when the base period is shifted.

Question 2

The term econometrics was coined by&#10;A)marsahll&#10;B)pawel&#10;C)ragnar frisch&#10;D)pareto

Accepted Answer

Ragnar Frisch, a Norwegian economist and Nobel laureate, is credited with coining the term "econometrics" to describe the discipline that applies mathematical and statistical methods to economic data to give empirical content to economic relationships.

Question 3

Econometrics model is ___________model&#10;A)exogenous&#10;B)endogenous&#10;C)identified&#10;D)either exogenous or endogenous

Accepted Answer

Econometric models can be either exogenous or endogenous depending on the nature of the variables involved and the relationships being modeled. Exogenous models have variables that are not influenced by other variables in the model, while endogenous models include variables that are influenced by other variables within the model.

Question 4

The starting point of econometric analysis is&#10;A)model specification&#10;B)formulation of alternative hypothesis&#10;C)formulation of null hypothesis&#10;D)collection of data

Accepted Answer

The answer of The starting point of econometric analysis is&#10;A)model...

Question 5

Regressor refers to&#10;A)independent variable&#10;B)dependent variable&#10;C)error term&#10;D)dummy variable

Accepted Answer

A regressor is another term for an independent variable, which is a variable that is manipulated to determine its effect on the dependent variable.

Question 6

In perfect linear model, we assume that regression coefficient remains _________&#10;A)variable until some point&#10;B)variable through out&#10;C)constant to some point&#10;D)constant through out

Accepted Answer

In a perfect linear model, it is assumed that the regression coefficient remains constant throughout, meaning it does not change with changes in the predictor variables.

Question 7

In econometric models, t+1 indicates,&#10;A)net addition&#10;B)current value with some fluctuations&#10;C)expected value&#10;D)none of these

Accepted Answer

In econometric models, t+1 typically indicates a future or expected value, often in the context of time series analysis where t represents the current time period and t+1 represents the next or future time period.

Question 8

When a north Indian town data and south Indian data are totalled, it leads to the problem of _________aggregation.&#10;A)national&#10;B)regional&#10;C)spatial&#10;D)heterogeneous

Accepted Answer

Spatial aggregation refers to the process of combining data from different locations, which can lead to issues if the areas have distinct characteristics or patterns. In this case, combining data from a north Indian town and a south Indian town involves spatial aggregation, as it merges data from two geographically distinct regions.

Question 9

Among the following, which is an assumption of OLS&#10;A)the explanatory variables are measurable&#10;B)the relationship being estimated is identified&#10;C)error term and independent variables are related&#10;D)error term and independent variables are linearly related

Accepted Answer

The answer of Among the following, which is an assumption...

Question 10

The property of average or expected value is equal to true value of the coefficient is the property of&#10;A)zero variance&#10;B)minimum variance&#10;C)zero mean&#10;D)minimum mean

Accepted Answer

The answer of The property of average or expected value...

Question 11

The power of a statistical test is defined as,&#10;A)1??&#10;B)1 + ?&#10;C)1&#10;D)?

Accepted Answer

The answer of The power of a statistical test is...

Question 12

Student t test is preferred in the case of a,&#10;A)large sample&#10;B)small sample&#10;C)when sample is below 50&#10;D)when sample is above 50

Accepted Answer

The answer of Student t test is preferred in the...

Question 13

Cobb Douglas production function is an example of&#10;A)linear model&#10;B)double log model&#10;C)lin log model&#10;D)log lin model

Accepted Answer

The answer of Cobb Douglas production function is an example...

Deck 7: Econometrics and Price Indexes: Statistical Models and Analysis