SIMPLE REGRESSION QUIZ

1.

The regression model includes a random error or

disturbance term for a variety of reasons. Which of
the following is NOT one of them? (1 pt)
a. measurement errors in the observed variables
b. omitted influences on Y (other than X)
c. linear functional form is only an approximation
d. the observable variables do not exactly
correspond with their theoretical counterparts
e. there may be approximation errors in the
calculation of the least squares estimates

2.

Which of the following assumptions about the error

term is not part of the so called "classical
assumptions"? (1 pt)
a. it has a mean of zero
b. it has a constant variance
c. its value for any observation is independent of its

value for any other observation

d. it is independent of the value of X
e. it has a normal distribution

3.

Which of the following is NOT true? (1 pt)

a. the point Xbar, Ybar always lies on the regression
line
b. the sum of the residuals is always zero
c. the mean of the fitted values of Y is the same as
the observed values of Y
d. there are always as many points above the fitted
line as there are below it
e. the regression line minimises the sum of the
squared residuals

4.

In a simple linear regression model the slope

coefficient measures (1 pt)
a. the elasticity of Y with respect to X

b. the change in Y which the model predicts for a

unit change in X
c. the change in X which the model predicts for a
unit change in Y
d. the ratio Y/X
e. the value of Y for any given value of X

5.

Changing the units of measurement of the Y

variable will affect all but which one of the following?
(1 pt)
a. the estimated intercept parameter
b. the estimated slope parameter
c. the Total Sum of Squares for the regression
d. R squared for the regression
e. the estimated standard errors

6.

A fitted regression equation is given by Yhat = 20 +

0.75X. What is the value of the residual at the point

X=100, Y=90? (1 pt)

a. 5
b. -5
c. 0
d. 15
e. -5

7.

What is the number of degrees of freedom for a

simple bivariate linear regression with 20
observations? (1 pt)
a. 20
b. 22
c. 18
d. 2

8.

R squared measures (1 pt)

a. the correlation between X and Y
b. the amount of variation in Y

c. the covariance between X and Y

d. the residual sum of squares as a proportion of the
Total Sum of Squares
e. the explained sum of squares as a proportion of
the Total Sum of Squares

9.

One tailed tests are sometimes used to test

hypotheses about regression coefficients. In which
of the following circumstances? (1 pt)
a. when the estimated coefficient has the sign
predicted by theory
b. when you wish to use a larger significance level
than 5%
c. when the sample size is large enough to use the
normal approximation to the t distribution
d. when the etsimated coefficient has the opposite
sign to that predicted by theory
e. when you are testing a hypothesis other than that

the parameter equals zero

10.

The least squares etimator of the slope coeficient is

unbiased means (1 pt)
a. the estimated slope coefficient will always be
equal to the true parameter value
b. the estimated slope coefficient will get closer to
the true parameter value as the size of the sample
increases
c. the estimated slope coefficient will be equal to the
true parameter if the sample is large
d. the mean of the sampling distribution of the slope
parameter is zero
e. if repeated samples of the same size are taken,
on average their value will be equal to the true
parameter