Deck 2: Understanding Statistical Relationships and Models in Economics

Question 1

a mathematical model assumes----- relationship between variables

A)inexact
B)exact
C)probable
D)none of the above

Answer 1

exact

Question 2

a function that can be represented as straight line graphically is

A)non linear
B)linear
C)polynomial
D)quadratic

Answer 2

linear

Question 3

in the function Y=?1+?2X+u, the term 'u' is called

A)disturbance term
B)intercept
C)slope
D)dependent term

Answer 3

disturbance term

Question 4

A model in which regressand is logarithmic is called...............

A)regression through the origin
B)lin log model
C)log lin model
D)clrm

Question 5

the function Y=?1+?2X+u is an example of

A)linear regression model
B)econometric model
C)all of the above
D)none of the above

Question 6

confirmation or refutation of economic theories on the basis of sample evidence is based on the branch of statistical theory called

A)statistical inference
B)standard deviation
C)arithmetic mean
D)regression analysis

Question 7

the term regression was first introduced by

A)irwing fisher
B)laspayer
C)francis galton
D)pearson

Question 8

Reciprocal and log lin models are ............. in variables.

A)non linear
B)linear
C)functional
D)dependent

Question 9

the function Y=?1+?2X+u is an example of

A)non linear regression model
B)linear regression model
C)quadratic regression model
D)none of the above

Question 10

In the Keynesian linear consumption function Y=?1+?2X, the independent variable is

A)?1
B). x
C)y
D)?2

Question 11

Statistical relationships assumes that variables are

A)random
B)stochastic
C)all of the above
D)none of the above

Question 12

A statistical relationship per say cannot logically imply

A)regression
B)causation
C)error
D)random

Question 13

The measure that analyses the degree of linear association between two variables is called

A)correlation coefficient
B)regression coefficient
C)significance level
D)testing of hypothesis

Question 14

In the Keynesian linear consumption function Y=?1+?2X, X represents

A)income
B)consumption expenditure
C)output
D)price

Question 15

Correlation analysis is concerned with

A)prediction of future value
B)prediction of average value
C)degree of association among variables
D)testing of hypothesis

Question 16

Correlation theory is based on the assumption of

A)randomness of variables
B)conditional mean
C)random errors
D)specification

Question 17

The correlation coefficient between the mathematics and economics was found to be 0.64. What will be the value of correlation coefficient between economics and mathematics

A)0.32
B)-0.64
C)0.64
D)1.28

Question 18

the law of universal regression was first introduced by

A)irwing fisher
B)laspayer
C)francis galton
D)pearson

Question 19

In ------ analysis there is no distinction between dependent and explanatory variables

A)regression
B)correlation
C)hypothesis testing
D)estimation

Question 20

If we are studying the dependence of a variable on a single explanatory variable, the analysis is called

A)two variable regression analysis
B)multiple regression analysis
C)single regression analysis
D)none of the above

Question 21

If we are studying the dependence of a variable on more than one explanatory variable, the analysis is called

A)two variable regression analysis
B)multiple regression analysis
C)single regression analysis
D)none of the above

Question 22

The term "random" is synonym for the term

A)stochastic
B)variable
C)error
D)regression

Question 23

If the data is collected at one point in time, it is called

A)time series data
B)cross section data
C)pooled data
D)none of the above

Question 24

If the data is collected over a period of time, it is called

A)time series data
B)cross section data
C)pooled data
D)none of the above

Question 25

The combination of time series and cross sectional data is known as

A)pooled data
B)panel data
C)longitudinal data
D)none of the above