12. A dummy variable: a. Is an artificial variable generated by the researcher via econometric packages b. Is used to check whether an event, policy, feature causes changes in the value of Y c. Takes on either 0 or 1 d. A and Ce. All the above

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12. A dummy variable: a. Is an artificial variable
generated by the researcher via econometric
packages b. Is used to check whether an event,
policy, feature causes changes in the value of Y c.
Takes on either 0 or 1 d. A and Ce. All the above
13. To test whether the partial impact of X 1 on Y
changes for different values of X 2, we include:
14. If the impact of X 1 on Y, differs depending on
the initial value that X 1 takes on, we: a. Include a
quadratic term in the regression equation b. Are
dealing with a non-linear impact of X 1 on Y c. Can
state that X1 has an increasing impact on Y d. A and
Вe. А and C
15. The partial impact of a categorical dummy on Y
is
16. Dummy Variable trap arises when we include all
possible groups in the regression equation. (True /
False)
17. The presence of multicollinearity between
regressors does not violate ceteris paribus
interpretation. (True / False)
18. When comparing two nested models, a
researcher runs a/n
test:
19. When comparing two non-nested models, one
can rely on:
Transcribed Image Text:12. A dummy variable: a. Is an artificial variable generated by the researcher via econometric packages b. Is used to check whether an event, policy, feature causes changes in the value of Y c. Takes on either 0 or 1 d. A and Ce. All the above 13. To test whether the partial impact of X 1 on Y changes for different values of X 2, we include: 14. If the impact of X 1 on Y, differs depending on the initial value that X 1 takes on, we: a. Include a quadratic term in the regression equation b. Are dealing with a non-linear impact of X 1 on Y c. Can state that X1 has an increasing impact on Y d. A and Вe. А and C 15. The partial impact of a categorical dummy on Y is 16. Dummy Variable trap arises when we include all possible groups in the regression equation. (True / False) 17. The presence of multicollinearity between regressors does not violate ceteris paribus interpretation. (True / False) 18. When comparing two nested models, a researcher runs a/n test: 19. When comparing two non-nested models, one can rely on:
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