Question 1

Assume that we are looking at the effect of education on wages, which of the following factors could most likely lead to endogeneity?

Accepted Answer

A)  Height 
B)  Religion 
C)  Number of siblings 
D)  Intelligence 
A)  Height 
B)  Religion 
C)  Number of siblings 
D)  Intelligence D

Question 2

Given GPAi=1.0+0.001SATi+ei what is the expected GPA of someone with an SAT score of 2000

Accepted Answer

A)  1.0 
B)  1.001 
C)  2000 
D)  3.0 
A)  1.0 
B)  1.001 
C)  2000 
D)  3.0 D

Question 3

Yi=B0+10X1i+ei, a 10 unit increase in X1 is expected to lead to a 1 unit increase in Y.

Accepted Answer

A) True 
 B)False  False

Question 4

Assume that we trying to explain infant mortality as a function of GDP per capita in a sample of countries from around the world. Which of the following factors could most likely lead to endogeneity?

Accepted Answer

A)  Whether the country has been at war 
B)  Population size 
C)  (Geographic) size of country 
D)  Use of proportional representation system 
A)  Whether the country has been at war 
B)  Population size 
C)  (Geographic) size of country 
D)  Use of proportional representation system

Question 5

When an independent variable is exogenous

Accepted Answer

A)  It is correlated with the error term 
B)  It is not correlated with the error term 
C)  It is correlated with the slope 
D)  It is not correlated with the slope 
A)  It is correlated with the error term 
B)  It is not correlated with the error term 
C)  It is correlated with the slope 
D)  It is not correlated with the slope

Question 6

An independent variable is endogenous if:

Accepted Answer

A)  It is correlated with another independent variable in the model. 
B)  It is correlated with the error term. 
C)  It is not correlated with the error term. 
D)  If it is correlated with Y. 
A)  It is correlated with another independent variable in the model. 
B)  It is correlated with the error term. 
C)  It is not correlated with the error term. 
D)  If it is correlated with Y.

Question 7

Imagine that you are looking at the relationship between political affiliation and religion, list some of the factors that could lead to endogeneity.

Accepted Answer

parents political af

Question 8

In randomized experiments we determine the value of the dependent variable via a random process.

Accepted Answer

A) True 
 B)False

Question 9

Given Incomei = 10 + 1.5Agei + ei, interpret the model

Accepted Answer

A)  A one year increase in age is expected to lead to a 1.5 increase in income 
B)  A 1.5 increase in age is expected to lead to a 1 increase in income 
C)  A 1.5 increase in income is expected to lead to a 1 unit increase in age 
D)  Income is 10 
A)  A one year increase in age is expected to lead to a 1.5 increase in income 
B)  A 1.5 increase in age is expected to lead to a 1 increase in income 
C)  A 1.5 increase in income is expected to lead to a 1 unit increase in age 
D)  Income is 10

Question 10

List and explain the three fundamental challenges in statistics.

Accepted Answer

Randomness, endogeneity and specificatio

Question 11

An independent variable is endogenous if changes in it are related to factors in the error term.

Accepted Answer

A) True 
 B)False

Question 12

Describe the basic process behind an experiment.

Accepted Answer

Individuals are divided into treatment a

Question 13

X1 is the slope coefficient in the following model Yi = B0 + B1X1i + ei.

Accepted Answer

A) True 
 B)False

Question 14

The dependent variable is the outcome of interest.

Accepted Answer

A) True 
 B)False

Question 15

Imagine that you are looking at the relationship between income and level of education, list some of the factors that could lead to endogeneity.

Accepted Answer

Parents income, type

Question 16

What is internal and external validity?

Accepted Answer

Internal validity refers to wh

Question 17

The error term

Accepted Answer

A)  Contains all other factors that affect the dependent variable. 
B)  Contains all other factors that affect the independent variable. 
C)  Contains all other factors that affect the intercept. 
D)  Is a random variable with no relation to other variables. 
A)  Contains all other factors that affect the dependent variable. 
B)  Contains all other factors that affect the independent variable. 
C)  Contains all other factors that affect the intercept. 
D)  Is a random variable with no relation to other variables.

Question 18

What is the goal of a randomized experiment?

Accepted Answer

A)  To create exogeneity. 
B)  To create endogeneity. 
C)  To deal with problems of external validity. 
D)  To increase sample size. 
A)  To create exogeneity. 
B)  To create endogeneity. 
C)  To deal with problems of external validity. 
D)  To increase sample size.

Question 19

Suppose we are trying to understand the effect of maternal smoking on the birthweight of newborn babies. Which of the following is not a likely source of endogeneity?

Accepted Answer

A)  Mother's health consciousness 
B)  Tax rates on cigarettes 
C)  Mother's education 
D)  Father's smoking habits 
A)  Mother's health consciousness 
B)  Tax rates on cigarettes 
C)  Mother's education 
D)  Father's smoking habits

Question 20

Which of the following are fundamental challenges when trying to infer relationships from data?

Accepted Answer

A)  Exogeneity 
B)  Endogeneity 
C)  Correlation 
D)  Math 
A)  Exogeneity 
B)  Endogeneity 
C)  Correlation 
D)  Math

Assume that we are looking at the effect of education on wages, which of the following factors could most likely lead to endogeneity?

Given GPA_i=1.0+0.001SAT_i+e_iwhat is the expected GPA of someone with an SAT score of 2000

Y_i=B₀+10X_1i+e_i, a 10 unit increase in X1 is expected to lead to a 1 unit increase in Y.

Assume that we trying to explain infant mortality as a function of GDP per capita in a sample of countries from around the world. Which of the following factors could most likely lead to endogeneity?

When an independent variable is exogenous

An independent variable is endogenous if:

Imagine that you are looking at the relationship between political affiliation and religion, list some of the factors that could lead to endogeneity.

In randomized experiments we determine the value of the dependent variable via a random process.

Given Income_i= 10 + 1.5Age_i+ e_i, interpret the model

List and explain the three fundamental challenges in statistics.

An independent variable is endogenous if changes in it are related to factors in the error term.

Describe the basic process behind an experiment.

X1 is the slope coefficient in the following model Y_i= B₀+ B₁X_1i+ e_i.

The dependent variable is the outcome of interest.

Imagine that you are looking at the relationship between income and level of education, list some of the factors that could lead to endogeneity.

What is internal and external validity?

The error term

What is the goal of a randomized experiment?

Suppose we are trying to understand the effect of maternal smoking on the birthweight of newborn babies. Which of the following is not a likely source of endogeneity?

Which of the following are fundamental challenges when trying to infer relationships from data?

Stats in the Wild: Good Data Practices

Bivariate Ols: the Foundation of Econometric Analysis

Hypothesis Testing and Interval Estimation: Answering Research

Multivariate Ols: Where the Action Is

Dummy Variables: Smarter Than You Think

Specifying Models

Using Fixed Effects Models to Fight Endogeneity in Panel Data a

Instrumental Variables: Using Exogenous Variation to Fight Endogen

Experiments: Dealing With Real-World Challenges

Regression Discontinuity: Looking for Jumps in Data

Dummy Dependent Variables

Time Series: Dealing With Stickiness Over Time

Advanced Ols

Advanced Panel Data

Filters

Exam 1: The Quest for Causality

Assume that we are looking at the effect of education on wages, which of the following factors could most likely lead to endogeneity?

Given GPAi=1.0+0.001SATi+ei what is the expected GPA of someone with an SAT score of 2000

Yi=B0+10X1i+ei, a 10 unit increase in X1 is expected to lead to a 1 unit increase in Y.

Assume that we trying to explain infant mortality as a function of GDP per capita in a sample of countries from around the world. Which of the following factors could most likely lead to endogeneity?

When an independent variable is exogenous

An independent variable is endogenous if:

Imagine that you are looking at the relationship between political affiliation and religion, list some of the factors that could lead to endogeneity.

In randomized experiments we determine the value of the dependent variable via a random process.

Given Incomei = 10 + 1.5Agei + ei, interpret the model

List and explain the three fundamental challenges in statistics.

An independent variable is endogenous if changes in it are related to factors in the error term.

Describe the basic process behind an experiment.

X1 is the slope coefficient in the following model Yi = B0 + B1X1i + ei.

The dependent variable is the outcome of interest.

Imagine that you are looking at the relationship between income and level of education, list some of the factors that could lead to endogeneity.

What is internal and external validity?

The error term

What is the goal of a randomized experiment?

Suppose we are trying to understand the effect of maternal smoking on the birthweight of newborn babies. Which of the following is not a likely source of endogeneity?

Which of the following are fundamental challenges when trying to infer relationships from data?

Stats in the Wild: Good Data Practices

Bivariate Ols: the Foundation of Econometric Analysis

Hypothesis Testing and Interval Estimation: Answering Research

Multivariate Ols: Where the Action Is

Dummy Variables: Smarter Than You Think

Specifying Models

Using Fixed Effects Models to Fight Endogeneity in Panel Data a

Instrumental Variables: Using Exogenous Variation to Fight Endogen

Experiments: Dealing With Real-World Challenges

Regression Discontinuity: Looking for Jumps in Data

Dummy Dependent Variables

Time Series: Dealing With Stickiness Over Time

Advanced Ols

Advanced Panel Data

Filters

Given GPA_i=1.0+0.001SAT_i+e_iwhat is the expected GPA of someone with an SAT score of 2000

Y_i=B₀+10X_1i+e_i, a 10 unit increase in X1 is expected to lead to a 1 unit increase in Y.

Given Income_i= 10 + 1.5Age_i+ e_i, interpret the model

X1 is the slope coefficient in the following model Y_i= B₀+ B₁X_1i+ e_i.