Question 1

The linear probability model contains heteroskedasticity unless _____.

Accepted Answer

A) the intercept parameter is zero 
B) all the slope parameters are positive 
C) all the slope parameters are zero 
D) the independent variables are binary 
A) the intercept parameter is zero 
B) all the slope parameters are positive 
C) all the slope parameters are zero 
D) the independent variables are binary

Question 2

Consider the following regression equation:   . Which of the following indicates a functional form misspecification in E(y|x)?

Accepted Answer

A) Ordinary Least Squares estimates equal Weighted Least Squares estimates. 
B) Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude. 
C) Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude. 
D) Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative. 
A) Ordinary Least Squares estimates equal Weighted Least Squares estimates. 
B) Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude. 
C) Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude. 
D) Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative.

Question 3

Multicollinearity among the independent variables in a linear regression model causes the heteroskedasticity-robust standard errors to be large.

Accepted Answer

A) True 
 B)False

Question 4

Weighted least squares estimation is used only when _____.

Accepted Answer

A) the dependent variable in a regression model is binary 
B) the independent variables in a regression model are correlated 
C) the error term in a regression model has a constant variance 
D) the functional form of the error variances is known 
A) the dependent variable in a regression model is binary 
B) the independent variables in a regression model are correlated 
C) the error term in a regression model has a constant variance 
D) the functional form of the error variances is known

Question 5

Consider the following regression model: yi =   0 +   1xi + ui. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____.

Accepted Answer

Question 6

The general form of the t statistic is _____.

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 7

Which of the following tests is used to compare the Ordinary Least Squares (OLS) estimates and the Weighted Least Squares (WLS) estimates?

Accepted Answer

A) The White test 
B) The Hausman test 
C) The Durbin-Watson test 
D) The Breusch-Godfrey test 
A) The White test 
B) The Hausman test 
C) The Durbin-Watson test 
D) The Breusch-Godfrey test

The linear probability model contains heteroskedasticity unless _____.

Consider the following regression equation: . Which of the following indicates a functional form misspecification in E(y|x)?

Multicollinearity among the independent variables in a linear regression model causes the heteroskedasticity-robust standard errors to be large.

Weighted least squares estimation is used only when _____.

Consider the following regression model: y_i = ₀ + ₁x_i + u_i. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____.

The general form of the t statistic is _____.

Which of the following tests is used to compare the Ordinary Least Squares (OLS) estimates and the Weighted Least Squares (WLS) estimates?

The Nature of Econometrics and Economic Data

The Simple Regression Model

Multiple Regression Analysis Estimation

Multiple Regression Analysis Inference

Multiple Regression Analysis Ols Asymptotics

Multiple Regression Analysis Further Issues

Multiple Regression Analysis With Qualitative Information

More on Specification and Data Issues

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Sries Data

Serial Correlation and Heteroskedasticity in Time Series Regressions

Pooling Cross Sections Across Time Simple Panel Data Methods

Advanced Panel Data Methods

Instrumental Variables Estimation and Two Strage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Correctons

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

Exam 8: Heteroskedasticity

The linear probability model contains heteroskedasticity unless _____.

Consider the following regression equation: . Which of the following indicates a functional form misspecification in E(y|x)?

Multicollinearity among the independent variables in a linear regression model causes the heteroskedasticity-robust standard errors to be large.

Weighted least squares estimation is used only when _____.

Consider the following regression model: yi = 0 + 1xi + ui. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____.

The general form of the t statistic is _____.

Which of the following tests is used to compare the Ordinary Least Squares (OLS) estimates and the Weighted Least Squares (WLS) estimates?

The Nature of Econometrics and Economic Data

The Simple Regression Model

Multiple Regression Analysis Estimation

Multiple Regression Analysis Inference

Multiple Regression Analysis Ols Asymptotics

Multiple Regression Analysis Further Issues

Multiple Regression Analysis With Qualitative Information

More on Specification and Data Issues

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Sries Data

Serial Correlation and Heteroskedasticity in Time Series Regressions

Pooling Cross Sections Across Time Simple Panel Data Methods

Advanced Panel Data Methods

Instrumental Variables Estimation and Two Strage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Correctons

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

Consider the following regression model: y_i = ₀ + ₁x_i + u_i. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____.