19. The White test test statistic is n*R² ~²(S-1). Where is the R² in the test statistic measured? A. The original econometric model when estimated using the White Robust Estimator B. The average from all the auxiliary regressions estimated with each explanatory variable as a function of the other explanatory variables C. The original econometric model before any test of heteroskedasticity has been performed D. The auxiliary regression of residuals as a function of the explanatory variables generating the heteroscedasticity 20. With annual times series data of 50 observations, how many observations are available to estimate the consumption econometric model CONt = ßo+ ß1DISPYt + ß2CONt-1+ut A. 50 B. 47 C. 45 D. 49 21. Suppose the estimated simple linear demand equation for single-game tickets for a major football league is q=4.58-0.51p where q is the number of tickets sold measured in thousands and p is the dollar price of a ticket. Further assume that the point of the means_is (ē,ā)=(10.25,3.19). Given this information and everything else held constant, the estimate of the price elasticity of demand for tickets is A. -0.16 B. 1.64 C. 0.16 D. -1.64 22. Suppose you estimate a linear-log form food expenditure equation, y = P + ₁ lnx where y is food expenditure (ksh 000) and x is income(ksh 000). In this case, if mean income is ksh 100, 000, a one percent change in income variable would lead to a change in food expenditure. A. ³₁/100 unit B. B₁ unit C. B₁/100 percent D. B1 percent 23. An education economist estimated the wage equation to determine the rate of return to an additional year of education and obtained In(WAGE) = -0.5220+ 0.1075 × EDUC. It is anticipated that ability (attributes, such as intelligence, creativity, perseverance, and industriousness) is positively correlated with EDUC. If a measure of ability is omitted from the model the estimated return to education A. Is biased downwards B. Is biased upwards C. Cannot be estimated D. All the above
19. The White test test statistic is n*R² ~²(S-1). Where is the R² in the test statistic measured? A. The original econometric model when estimated using the White Robust Estimator B. The average from all the auxiliary regressions estimated with each explanatory variable as a function of the other explanatory variables C. The original econometric model before any test of heteroskedasticity has been performed D. The auxiliary regression of residuals as a function of the explanatory variables generating the heteroscedasticity 20. With annual times series data of 50 observations, how many observations are available to estimate the consumption econometric model CONt = ßo+ ß1DISPYt + ß2CONt-1+ut A. 50 B. 47 C. 45 D. 49 21. Suppose the estimated simple linear demand equation for single-game tickets for a major football league is q=4.58-0.51p where q is the number of tickets sold measured in thousands and p is the dollar price of a ticket. Further assume that the point of the means_is (ē,ā)=(10.25,3.19). Given this information and everything else held constant, the estimate of the price elasticity of demand for tickets is A. -0.16 B. 1.64 C. 0.16 D. -1.64 22. Suppose you estimate a linear-log form food expenditure equation, y = P + ₁ lnx where y is food expenditure (ksh 000) and x is income(ksh 000). In this case, if mean income is ksh 100, 000, a one percent change in income variable would lead to a change in food expenditure. A. ³₁/100 unit B. B₁ unit C. B₁/100 percent D. B1 percent 23. An education economist estimated the wage equation to determine the rate of return to an additional year of education and obtained In(WAGE) = -0.5220+ 0.1075 × EDUC. It is anticipated that ability (attributes, such as intelligence, creativity, perseverance, and industriousness) is positively correlated with EDUC. If a measure of ability is omitted from the model the estimated return to education A. Is biased downwards B. Is biased upwards C. Cannot be estimated D. All the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:19. The White test test statistic is n*R² ~x²(S-1). Where is the R² in the test statistic measured?
A. The original econometric model when estimated using the White Robust Estimator
B. The average from all the auxiliary regressions estimated with each explanatory
variable as a function of the other explanatory variables
C. The original econometric model before any test of heteroskedasticity has been
performed
D. The auxiliary regression of residuals as a function of the explanatory variables
generating the heteroscedasticity
20. With annual times series data of 50 observations, how many observations are available to
estimate the consumption econometric model CONt = Bo+ ß₁DISPYt + B₂CONt-1+ut
A. 50
B. 47
C. 45
D. 49
21. Suppose the estimated simple linear demand equation for single-game tickets for a major
football league is q=4.58-0.51p where q is the number of tickets sold measured in
thousands and p is the dollar price of a ticket. Further assume that the point of the
means_is (ē,ā)=(10.25,3.19). Given this information and everything else held
constant, the estimate of the price elasticity of demand for tickets is
A. -0.16
B. 1.64
C. 0.16
D. -1.64
22. Suppose you estimate a linear-log form food expenditure equation, y = ß + ß lnx where
y is food expenditure (ksh 000) and x is income(ksh 000). In this case, if mean income is
ksh 100, 000, a one percent change in income variable would lead to a
change in
food expenditure.
A. B₁/100 unit
B. B₁ unit
C. B₁/100 percent
D. B1 percent
23. An education economist estimated the wage equation to determine the rate of return to an
additional year of education and obtained In(WAGE) = −0.5220 +0.1075 × EDUC. It is
anticipated that ability (attributes, such as intelligence, creativity, perseverance, and
industriousness) is positively correlated with EDUC. If a measure of ability is omitted
from the model the estimated return to education
A. Is biased downwards
B. Is biased upwards
C. Cannot be estimated
D. All the above
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