ECON510-1900-SP11: 5th Assignment

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ECON510-1900-Managerial Economics-SP11-KIM You are logged in as Dhruv Dholakiya (Logout)

UNVA-Online► ECON510-1900-SP11► Quizzes► 5th Assignment► Review of attempt 2

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Sunday, May 8, 2011, 06:55 PM Sunday, May 8, 2011, 07:36 PM 40 mins 19 secs 15/35 2.14 out of a maximum of 5 (43%)

The number of observations minus the number of estimated coefficients in a regression equation is called: Marks: 1

1

Choose one answer.

a. degrees of freedom. b. standard error fo the regression. c. variance. d. none of the above.

Incorrect Marks for this submission: 0/1.

Which of the following is a test of the statistical significance of a particular regression coefficient? Marks: 1

2

Choose one answer.

a. Durbin-Watson test b. t-test c. F-test d. R2

Incorrect Marks for this submission: 0/1.

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In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred? Marks: 1

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Choose one answer.

a. When the product being marketed is relatively new. b. When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive. c. When the level of economic activity can have a significant effect on the demand for the firm's output. d. When the product can be packaged with a variety of price and quality combinations.

Incorrect Marks for this submission: 0/1.

An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the Marks: 1 value of the t-statistic for testing the null hypothesis of the regression coefficient?

4

Choose one answer.

a. 2 b. 0.5 c. 5 d. 1

Incorrect Marks for this submission: 0/1.

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When the R2 of a regression equation is very high, it indicates that

Marks: 1

Choose one answer.

a. a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. b. the intercept term has no economic meaning. c. there is a good chance of serial correlation and so the equation must be discarded. d. all the coefficients are statistically significant.

Correct Marks for this submission: 1/1.

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Marks: 1 Data

collected on the same observation unit at a number of points in time are called: Choose one answer.

a. time series data. b. panel data. c. cross-section data. d. none of the above.

Incorrect Marks for this submission: 0/1.

Which of the following is a measure of the explanatory power of the regression model? Marks: 1

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Choose one answer.

a. t-test b. Durbin-Watson test c. R2 d. F-test

Correct Marks for this submission: 1/1.

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The Delphi method is a

Marks: 1

Choose one answer.

a. na誰ve forecasting approach. b. smoothing technique in forecasting. c. consensual forecast based on expert opinions. d. compound growth approach to forecasting.

Correct Marks for this submission: 1/1.

A general rule of thumb is that if, after a period of increases, the leading indicator index sustains ________ consecutive declines, a recession (or at Marks: 1 least a slowing of the economy) will follow.

9

Choose one answer.

a. six b. five

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c. four d. three Correct Marks for this submission: 1/1.

Quantitative forecasting that projects past data without explaining the reasons for future trends is called Marks: 1

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Choose one answer.

a. empirical forecasting. b. dumb forecasting. c. scientific forecasting. d. na誰ve forecasting.

Correct Marks for this submission: 1/1.

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The F-test is used in forecasting to

Marks: 1

Choose one answer.

a. determine how well a regression equation can account for dependent variable values. b. establish confidence intervals for testing regression coefficients. c. examine the degree of multicollinearity among independent variables. d. determine whether an identification problem exists.

Correct Marks for this submission: 1/1.

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The coefficient of determination is defined as the

Marks: 1

Choose one answer.

a. ratio of the regression sum of squares to the sum of the squared errors. b. ratio of the total sum of squared errors to the sum of squared errors. c. ratio of the sum of squared errors to the total sum of squared errors. d. none of the above.

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Correct Marks for this submission: 1/1.

When using regression analysis for forecasting, the confidence interval indicates Marks: 1

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Choose one answer.

a. the range in which the value of the dependent variable is expected to lie with a given degree of probability. b. the degree of confidence that one has in the equation's R2. c. the degree of confidence that one has in the regression coefficients. d. the range in which the actual outcome of a forecast is going to lie.

Correct Marks for this submission: 1/1.

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If a regression coefficient passes the t-test, it means that

Marks: 1

Choose one answer.

a. the regression coefficient is significantly different from zero. b. the regression coefficient can be used for forecasting. c. the regression equation is valid. d. the regression coefficient should be included in the regression equation.

Correct Marks for this submission: 1/1.

An explanatory forecasting technique in which the analyst must select independent variables that help determine the dependent variable is called Marks: 1

15

Choose one answer.

a. regression analysis. b. trend analysis. c. moving average method. d. exponential smoothing.

Correct Marks for this submission: 1/1.

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The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination? Marks: 1

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Choose one answer.

a. 25 b. 1.00 c. 0 d. 0.75

Correct Marks for this submission: 1/1.

The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to: Marks: 1

17

Choose one answer.

a. 12.5 b. 7.5 c. 10 d. 2.5

Correct Marks for this submission: 1/1.

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The problem of autocorrelation refers to

Marks: 1

Choose one answer.

a. regression coefficient values which are not significantly different from zero. b. insufficient data to estimate egression coefficient values. c. independent variables in a regression equation whose values are closely related to each other. d. regression equation variables which exhibit a similar pattern in their values over a number of time periods.

Incorrect Marks for this submission: 0/1.

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The use of a dummy variable in regression analysis indicates

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ECON510-1900-SP11: 5th Assignment

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a. the use of hypothetical data. b. that insufficient data is available for the analysis. c. that a variable is expected to either have or not have an impact on a dependent variable. d. that a researcher does not really know what to include in the equation.

Incorrect Marks for this submission: 0/1.

20 Marks: 10

Scenario 1: The demand model relating the quantity of good XYZ sold (QXYZ) to the price of good (PXYZ) is reported below: QXYZ = 4.46 + .304 PXYZ Coefficient Standard Error 4.46 3.04 .304 .3243 Analysis of Variance: Source DF Sum of Squares Regression 141.9 Residual 3718.9 Total 24 a. Refer to Scenario 1. What is the t-statistic for the slope coefficient? b. Refer to Scenario 1. Is the slope coefficient statistically different from zero? explain concisely with your calculation. c. Refer to Scenario 1. What is the total sum of squares?

Answer:

a. Refer to Scenario 1. What is the t - statistic for the slope coefficient? Ans: UPWARD b. Refer to Scenario 1. Is the slope coefficient statistically different from zero? explain concisely with your calculation.

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ANS: YES, Slop coefficient statistically different from zero. I had a confusion here??? c. Refer to Scenario 1. What is the total sum of squares? Ans: 3859.9 or 1929.95

Which of the following indicators will always improve when more variables are added to a regression equation? Marks: 1

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Choose one answer.

a. R2 b. the standard errors of the coefficients c. the t-test d. the magnitudes of the coefficients

Correct Marks for this submission: 1/1.

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price Marks: 1 elasticity?

22

Choose one answer.

a. -1.5, elastic b. 1.5, inelastic c. 12, elastic d. 120, elastic

Correct Marks for this submission: 1/1.

23 Marks: 1

Answer the following question(s) based on the following regression equation (Standard errors in parentheses, n = 150): QD = 1000 - 50PA + 10PB+ .05I, (20) (7) (.04) where QD = quantity demanded of good A, PA = price of good A, PB = price of a competing good B, and I = per capita income.

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For which of the following variables should a "two tail" t-test be applied? Choose one answer.

a. P b. PC c. I d. Should be applied for all.

Incorrect Marks for this submission: 0/1.

From a management policy perspective, which regression result is the most useful? Marks: 1

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Choose one answer.

a. a regression equation that has the highest R2 b. a regression equation that has the least number of dummy variables c. a regression equation that passes the F-test d. a regression equation whose explanatory variables all pass the t-test

Incorrect Marks for this submission: 0/1.

25

Regression analysis can best be described as

Marks: 1

Choose one answer.

a. a statistical technique for creating functional relationships among variables. b. a statistical technique for determining the true values of variables. c. a statistical technique for estimating the best relationship between one variable and a set of other selected variables. d. None of the above

Correct Marks for this submission: 1/1.

26

R2 is a statistical measure which

Marks: 1

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ECON510-1900-SP11: 5th Assignment

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a. tests the true value of a variable. b. determines how well an equation can estimate the relationship between one variable and a set of other variables. c. determines how important one variable is in explaining the value of another variable. d. All of the above

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ECON510-1900-SP11

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5/8/2011

Ch - 5 TEst

Published on Jun 15, 2011

Which of the following is a test of the statistical significance of a particular regression coefficient? Choose one answer. Choose one answe...

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