Question 1

When a north Indian town data and south Indian data are totaled, it leads to the problem of -------------aggregation.
A)national
B)regional
C)spatial
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 that are not accounted for in the aggregation process.

Question 2

In an econometric model, Y =$\infty$ + $\beta$X, $\infty$ shows,
A)intercept of the equation
B)slope of the equation
C)average value of y for average value of x
D)rate of change

Accepted Answer

In the given econometric model, $\infty$ represents the intercept of the equation, which is the value of Y when X is zero.

Question 3

Error term indicates
A)fluctuations in the given data
B)variations
C)random variations
D)explained variation

Accepted Answer

The error term in a statistical model represents random variations or noise that cannot be explained by the model.

Question 4

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

Accepted Answer

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

Question 5

Linearity means
A)the ols estimates are linear function of random variable
B)the ols estimates are function of variable
C)the ols estimates are function of random variable
D)the ols estimates has minimum variance

Accepted Answer

Linearity in the context of OLS (Ordinary Least Squares) estimates means that the estimates are linear functions of the random variables (the observed data). This implies that each estimate can be expressed as a linear combination of the observed values.

Question 6

The power of a statistical test is defined as,
A)1-$\beta$
B)1 + $\beta$
C)1
D)$\beta$

Accepted Answer

The power of a statistical test is defined as 1 minus the probability of Type II error, denoted as 1-β (beta), where β represents the chance of failing to reject a false null hypothesis.

Question 7

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

Accepted Answer

The Student t-test is typically used for small sample sizes, generally considered to be less than 30.

Question 8

Cobb Douglas production function is an example of :
A)linear model
B)double log model
C)lin log model
D)log lin model

Accepted Answer

The Cobb Douglas production function is an example of a double log model because both the output and the inputs are expressed in logarithmic form, allowing for the analysis of elasticities directly through the coefficients.

Quiz 2: Econometrics and Factors of Production

When a north Indian town data and south Indian data are totaled, it leads to the problem of -------------aggregation.

In an econometric model, Y = $\infty$ + $\beta$ X, $\infty$ shows,

Error term indicates

Among the following, which is an assumption of OLS

Linearity means

The power of a statistical test is defined as,

Student t test is preferred in the case of a,

Cobb Douglas production function is an example of :