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Econometrics MCQs
The regression line was first used by:
a. Francis Galton
b. Ragnar Frisch
c. Adam Smith
d. All of the above
ANS: A
The term ‘econometrics was introduced by Norwegian statistician and economist Ragnar Frisch in:
a. 1924
b. 1925
c. 1926
d. 1927
ANS: C
Econometrics may be defined as the social science in which the tools of economic theory, mathematical and statistical inference are applied to the analysis of economic phenomena” who said it?
a. Gerhard Tintner
b. Arthur S. Goldberger
c. Damodar N Gujarti
d. Sangeetha
ANS: A
The correlation coefficient must lie in the range from:
a. -1 to +1
b. +1 to -1
c. 1 < r < infinity
d. 0 < r < 1
ANS: A
‘e’ is called
a. Residual
b. Error term
c. Both a and b
d. None of these
ANS: C
OLS stands for:
a. Ordinary least squares
b. Ordinary linear squares
c. Ordinary least Squares
d. None of these
ANS: A
The term ‘Regression’ was introduced by:
a. K. Pearson
b. M. G, Kendall
c. Fagnar Frisch
d. Francis Galton
ANS: D
The regression equation is also called:
a. Predication equation
b. Estimating equation
c. Line of average relationship
d. All of the above
ANS: D
In a regression line of Y and X, the variable X is known as:
a. Regressor
b. Explanatory variable
c. Independent variable
d. All of the above (answer)
ANS: D
The sample correlation coefficient is also known as:
a. Pearson correlation coefficient
b. product-moment correlation coefficient
c. both (a) and (b)
d. none of the above
ANS: C
Three types of data:
a. Time series, cross-section, secondary data
b. Time series, cross-section, primary data
c. Time series, cross-section, pooled data
d. Time series, cross-section, panel data
ANS: D
Y = B1+B2X1 is called
a. Simple regression function
b. Parametric function
c. Population regression function
d. All of above
ANS: A
An estimator is also known as:
a. Statistic
b. Sample
c. Both a and b
d. None of these
ANS: C
The error term (u) is:
a. Actual – estimated values
b. Actual + estimated values
c. Notation d. None of these
ANS: A
The variable appearing on the left side of the equality sign is called the:
a. Dependent variable
b. Independent variable
c. Endogenous variable
d. Both (a) and (b)
ANS: D
In the Keynesian consumption function, consumption777 is the:
a. Dependent variable
b. Independent variable
c. Explained variable
d. Both (a) and (c)
ANS: D
If its means and variance do not change systematically over time. Is known as:
a. Time series is non-stationary
b. Time series is stationary
c. Both (a) and (b)
d. None of them
ANS: B
When one or more variables are collected at the same point in time, is known as:
a. Time series data
b. Cross-section data
c. Panel data
d. Both (a) and (b)
ANS: B
In a simple regression model Y= a+B₁X₁+μ. The B₁ represents:
a. Slope & Regression coefficient
b. Induced & Variable
c. Both (a) and (b)
d. None of the above
ANS: C
In the regression specification, Y=a+B₁X₁+e is called the parameter
a. Intercept & fixed
b. Regression constant
c. Autonomous
d. All of the above
ANS: D
Which of the following method used for the detection of heteroscedasticity?
a. Informal methods
b. Formal methods
c. Both of them
d. None of them
ANS: C
Non-spherical errors refer to:
a. Heteroscedasticity
b. Auto-correlated errors
c. Both (a) and (b)
d. None of them
ANS: C
If r+-, the two lines of regression are:
a. coincident
b. parallel
c. perpendicular to each other
d. none of the above
ANS: A
If r=1, the angle between the two lines of regression is:
a. 0⁰
b. 90⁰
c. 60⁰
d. 30⁰
ANS: A
If r =0, the lines of regression are:
a. Coincident
b. Parallel
c. Perpendicular to each other
d. None of the above
ANS: C
The regression coefficient is independent of:
a. Origin
b. Scale
c. Both origin and scale
d. Neither origin nor scale
ANS: A
The idea of product-moment correlation was given by:
a. R. A. Fisher
b. Sir Francis Galton
c. Karl Pearson
d. Spearman
ANS: C
The correlation coefficient was invented in the year::
a. 1910
b. 1890
c. 1908
d. None of the above
ANS: B
If ‘r’ is the simple correlation, the quantity (1-r2) is called:
a. Coefficient of determination
b. Coefficient of non-determination
c. Coefficient of alienation
d. None of the above
ANS: B
Autocorrelation is also known as:
a. Bi-serial correlation
b. Serial correlation
c. Spearman’s correlation
d. None of the above
ANS: B
The range of partial correlation coefficient is:
a. 0 to 1
b. 0 to ∞o
c. -1 to 1
d. -∞ to ∞
ANS: C
The range of partial regression coefficient is:
a. -1 to 1
b. 0 to 1
c. 0 to ∞
d. -∞o to ∞
ANS: D
The correlation between the two variables is -1, there are:
a. Perfect positive correlation
b. Perfect negative correlation
c. Perfect correlation
d. No correlation
ANS: B
The correlation between the two variables is unity (+1), there is:
a. Perfect positive correlation
b. Perfect negative correlation
c. Perfect correlation
d. No correlation
ANS: A
The function Y = Bo + B1X1 + B2X₂ represents:
a. A hyperbola
b. An exponential curve
c. A parabola
d. All of the above
ANS: C
Most economic variables belong to:
a. Interval scale
b. Ordinal scale
c. Ratio scale
d. Nominal scale
ANS: C