Question

1.Which of the following is true of Chow test? a. It is a type of sign...

1.Which of the following is true of Chow test?

a.

It is a type of sign test.
b.

It is only valid under heteroskedasticity.
c.

It is only valid under homoskedasticty.
d.

It is a type of t test.

2.

Consider the following simple regression model y = β0 + β1x1 + u. Suppose Corr(x,u) > 0, Corr(z,x) > 0, and Corr(z,u) < 0. Then, the IV estimator has a(n) _____.

a.

substantial bias
b.

downward bias
c.

asymptotic bias
d.

upward bias

3.

Which of the following Gauss-Markov assumptions is violated by the linear probability model?

a.

The assumption of no exact linear relationship among independent variables.
b.

The assumption of constant variance of the error term.
c.

The assumption that none of the independent variables are constants.
d.

The assumption of zero conditional mean of the error term.
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