Question

QUESTION 30

True or False: We can include a categorical variable (such as
region) in a multivariate model in the same way we include a
continuous variable.

True

False

2.5 points

QUESTION 31

True or False: We fail to reject the null hypothesis if the test
statistic is greater than the critical value.

True

False

2.5 points

QUESTION 32

True or False: We necessarily do not have an omitted variable bias
problem the omitted variable is uncorrelated with the included
variable.

True

False

2.5 points

QUESTION 33

True or False: When conducting analysis using categorical
variables, we include a dummy variable for every category covered
by the categorical variable.

True

False

Answer #1

ToAns. False because we use dummy variable to include a categorical variable into a multivariate model.

Ans. False because if the test statistic is greater than critical value then ut lies in the rejection region of the bell curve and hence, we reject the null humypothesis.

Ans. False because ommited variable may or may not be related with the independent variable but is related to the dependent variable, thus, crating bias in the dependent variable value from the regression.

Ans. False because for n categories only n-1 dummy variables should be included bht if n dummy variables are included then there will be a problem of dummy variable trap

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QUESTION 24
True or False: Measurement error in the dependent variable causes
our beta-hat estimates to be biased.
True
False
2.5 points
QUESTION 25
True or False: Perfect multicollinearity means all independent
variables are uncorrelated with each other.
True
False
2.5 points
QUESTION 26
True or False: Statistical tools allow us to prove the null
hypothesis is wrong.
True
False
2.5 points
QUESTION 27
True or False: The coefficient on the interaction of a dummy
variable and...

QUESTION 33
True or False: When conducting analysis using categorical
variables, we include a dummy variable for every category covered
by the categorical variable.
True
False
QUESTION 34
We are analyzing the effects of regime type on corruption rates
with the following model: Corruption = 10 - 0.1 GDP (per capita) -
2.0Democracy where Corruption is an index of corruption, GDP (per
capita) is measured in thousands of dollars, and Democracy is a
dummy variable that is equal to one...

QUESTION 19
True or False: Adding more independent variables into the model
necessarily reduces bias.
True
False
2.5 points
QUESTION 20
True or False: By adding more independent variables into our OLS
model, we have a greater chance of getting rid of the endogeneity
that exists within the error term.
True
False
2.5 points
QUESTION 21
True or False: Given the model Income = β 0 + β 1 Parental income +
β 2 Male where Male is...

1. If we add k indicator variables to a regression model for a
categorical variable with k levels, the regression tool will return
one coefficient estimate of 0.00 because:
a. The k variables are not independent b. The k variables are
independent
2. If we add up to 3rd order polynomial terms to a regression
model (e.g., x, x^2 and x^3) it will allow the relationship between
X and Y to change direction 3 times.
a. True b. False
3....

Question 1 2.5 pts 1. The perfectly competitive firm's demand
curve is horizontal at the market price. True False Flag this
Question Question 2 2.5 pts 2. In perfect competition, the market
price is established at the intersection of the market demand and
market supply curves in the industry and the individual firms are
"price takers" of that market price. True False Flag this Question
Question 3 2.5 pts 3. The perfectly competitive firm will continue
to produce in the...

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