Question

Multiple choice! Consider the model Yi = B0 + B1X1i + B2X2i + B3X3i + B4X4i...

Multiple choice!

Consider the model Yi = B0 + B1X1i + B2X2i + B3X3i + B4X4i + Ui. To test the null hypothseis of B2 = B3 = 0, the restricted regression is:

  • A. Yi = B0 + B1X1i + B2X2i + B3X3i + B4X4i + Ui
  • B. Yi = B0 + Ui
  • C. Yi = B0 + B1X1i + B4X4i + Ui
  • D. Yi = B0 + B2X2i + B3X3i + Ui

Consider the model Yi = B0 + B1X1 + B2X2 + B3(X1X2) + Ui. This model assumes that:

  • A. X2 is the regressor and X1 is the regressand
  • B. the effect of X2 on Y depends on the value of X1
  • C. the effect of X2 on Y is constant
  • D. there is no possible effect of X2 on Y

Consider the quadratic regression Yi = B0 + B1Xi + B2(Xi-squared) + Ui. If you could not reject a null hypothesis that the slope coefficient B2 is not significant, then:

  • A. the polynomial degree will be increased.
  • B. the quadratic regression will become a linear regression.
  • C. we can claim that B1 is not significant also.
  • D. the quadratic regression will become a cubic regression.

Consider the quadratic regression Yi = B0 + B1Xi + B2(Xi-squared) + Ui. The degree of polynomial in this regression is:

  • A. 0
  • B. 2
  • C. 1
  • D. 2 squared or (4)

Homework Answers

Answer #1

1)Consider the model Yi = B0 + B1X1i + B2X2i + B3X3i + B4X4i + Ui. To test the null hypothseis of B2 = B3 = 0, the restricted regression is:

As B2 and B3 coefficient need to check. only their coefficient need to be included.

D. Yi = B0 + B2X2i + B3X3i + Ui

2)Consider the model Yi = B0 + B1X1 + B2X2 + B3(X1X2) + Ui. This model assumes that:

B. the effect of X2 on Y depends on the value of X1

3)Consider the quadratic regression Yi = B0 + B1Xi + B2(Xi-squared) + Ui. If you could not reject a null hypothesis that the slope coefficient B2 is not significant, then:

B. the quadratic regression will become a linear regression.

4)Consider the quadratic regression Yi = B0 + B1Xi + B2(Xi-squared) + Ui. The degree of polynomial in this regression is:

B. 2

Please revert in case of any doubt.

Please upvote. Thanks in advance

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