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1.1 The difference between the 'error term' and the 'residual' is that... a. the former relates to the PRF and the latter relates to the SRF. b. the former relates to the SRF and the latter relates to the PRF. c. there is no difference, just different terminology for the same concept. d. the former is an estimate of the latter. e. the former is based on sample data and the latter is based on population data. 1.2 The sample regression function is.... a. a better representation of the data than is the population regression function. b. an estimator of the population regression function. c. estimated using population data. d. an estimator giving the true mean response of Y for given values of X. e. is usually estimated without an error term. 1.3 The CNLRM assumes that.... a. each error term is normally distributed. b. the sample mean of the error term is zero. c. the mean of the error terms is normally distributed. d. the regressors are normally distributed. e. the outcome variable is normally distributed.

1.1 The difference between the 'error term' and the 'residual' is that... a. the former relates to the PRF and the latter relates to the SRF. b. the former relates to the SRF and the latter relates to the PRF. c. there is no difference, just different terminology for the same concept. d. the former is an estimate of the latter. e. the former is based on sample data and the latter is based on population data. 1.2 The sample regression function is.... a. a better representation of the data than is the population regression function. b. an estimator of the population regression function. c. estimated using population data. d. an estimator giving the true mean response of Y for given values of X. e. is usually estimated without an error term. 1.3 The CNLRM assumes that.... a. each error term is normally distributed. b. the sample mean of the error term is zero. c. the mean of the error terms is normally distributed. d. the regressors are normally distributed. e. the outcome variable is normally distributed.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1.1 The difference between the 'error term' and the 'residual' is that... a. the former relates to the PRF and the latter relates to the SRF. b. the former relates to the SRF and the latter relates to the PRF. c. there is no difference, just different terminology for the same concept. d. the former is an estimate of the latter. e. the former is based on sample data and the latter is based on population data. 1.2 The sample regression function is.... a. a better representation of the data than is the population regression function. b. an estimator of the population regression function. c. estimated using population data. d. an estimator giving the true mean response of Y for given values of X. e. is usually estimated without an error term. 1.3 The CNLRM assumes that.... a. each error term is normally distributed. b. the sample mean of the error term is zero. c. the mean of the error terms is normally distributed. d. the regressors are normally distributed. e. the outcome variable is normally distributed.
Transcribed Image Text:1.1 The difference between the 'error term' and the 'residual' is that... a. the former relates to the PRF and the latter relates to the SRF. b. the former relates to the SRF and the latter relates to the PRF. c. there is no difference, just different terminology for the same concept. d. the former is an estimate of the latter. e. the former is based on sample data and the latter is based on population data. 1.2 The sample regression function is.... a. a better representation of the data than is the population regression function. b. an estimator of the population regression function. c. estimated using population data. d. an estimator giving the true mean response of Y for given values of X. e. is usually estimated without an error term. 1.3 The CNLRM assumes that.... a. each error term is normally distributed. b. the sample mean of the error term is zero. c. the mean of the error terms is normally distributed. d. the regressors are normally distributed. e. the outcome variable is normally distributed.
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