0

.docx

School

University of Kentucky *

*We aren’t endorsed by this school

Course

391

Subject

Economics

Date

Apr 3, 2024

Type

docx

Pages

17

Uploaded by jburden23

Last Name: ____________________ First Name: ____________________ ECO 391 (Fall 2022) Exam 2 Directions: You have 60 minutes to complete the exam and it is out of 100 points. Multiple choice 1 to 42 are worth 2.38 points per question. Good Luck!!! 1. The table below shows a portion of regression results. 1
SS MS F Significance F Regression 17248773 17248773 926.170433 9.80086E-68 Residual 2923930 18623.76 Total 20172703 What is the R 2 value? a. 0.56 b. 0.66 c. 0.76 d. 0.86 2. Which of the following corresponds to the explained part of the variation in the dependent variable? a. The total sum of squares b. The regression sum of squares c. The residual sum of squares d. The degrees of freedom 3. A model has unexplained variation of 153.47 and total variation of 1234.50. What is the R 2 value of this model? a. 0.1243 b. 0.8756 c. 0.95 d. 1.04 4. A researcher is interested in the determinants of monthly consumption of natural gas in North Carolina. She estimates a simple model with only mean monthly temperature as the independent variable. What does the R 2 of this model represent? a. The variance of the coefficient on mean temperature b. The percent of variation in gas consumption explained by variations in mean temperature c. The expected increase in gas consumption associated with a one unit increase in mean temperature d. The mean difference between the predicted level of gas consumption and the actual value 2
5. Consider the following sample regression equation: Y bar ¿ 27 5 x 1 + 2 x 2 . When x 1 is equal to 0 and x 2 is equal to 1, the dependent variable is equal to 19. What is the residual (the error) for this observation? a. -5 b. 27 c. -10 d. 4 6. Which of the following variables is categorical? a. Time b. Cost c. Sex d. Weight 7. A researcher models gas = B 0 + β 1 high + β 2 low . What is the predicted change in gas if both high and low increase by 1 unit? a. β 0 b. β 0 + β 1 + β 2 c. β 0 + β 1 d. β 1 + β 2 8. The results of estimating the model gas = B 0 + β 1 high + β 2 low is given below, where high is mean maximum temp and low is mean minimum temp. Coefficients Standard Error t Stat P-value Intercept 64269 9621.358767 6.6799 3.67391E-09 Mean Maximum Temp -2148 787.7000993 -2.727 0.007946215 Mean Minimum Temp 1260.9 773.3760344 1.6303 0.107224631 What is the estimated value of β 1 ? a. 64,269 b. -2.727 c. -2,148 d. 1.6303 9. Consider the sample regression equation ^ y = 15 + 2 x 1 + 7 x 2 x 3 . What is the predicted value of the dependent variable when x 1 = 2 , x 2 = 1 , and x 3 = 4 ? a. 15 3
b. 22 c. 26 d. 31 10. Consider the sample regression equation ^ y = 15 + 2 x 1 + 7 x 2 x 3 . What is the predicted change in Yhat when x 1 increases by 1 unit, x 2 does not change, and x 3 increases by 1 unit? a. Decrease 2 units b. Decrease 1 unit c. Increase 1 unit d. Increase 2 units 11. Consider the sample regression equation ^ y = 15 + 2 x 1 + 7 x 2 x 3 . What is the value of the residual when x 1 is 0, x 2 is 0, x 3 is 5, and Y is 20? a. 10 b. 15 c. 20 d. 25 12. What is one advantage of using dummy variables? a. They can take any possible value, making it easier to work with b. They are simpler to add to your model than other variables. c. They allow you to capture qualitative measures. d. They have no advantage over other variables. 13. A researcher estimates the model crime = β 0 + β 1 education + β 2 wage + β 3 youth + β 4 Expenditure + ε . She obtains the results below. Coefficients Intercept -111.688723 Education 1.66861011 Wage 0.00332358 Youth -0.89949622 Expenditure 0.79326242 Increases in which variables are associated with increases in crime? a. Education b. Education, wage 4
c. Education, wage, youth d. Education, wage, expenditure 14. In a multiple regression analysis involving 12 independent variables and 166 observations, SSR = 878 and SSE = 122. Thus, the coefficient of determination is __________. a. 0.139 b. 0.122 c. 0.878 d. 0.731 15. A researcher estimates the model crime = β 0 + β 1 education + β 2 wage + β 3 youth + β 4 Expenditure + ε . She obtains the results below. Coefficients Standard Error t Stat P-value Intercept -111.688723 72.60820393 -1.53824 0.131491 Education 1.66861011 3.305592294 0.504784 0.616349 Wage 0.00332358 0.065738859 0.050557 0.959918 Youth 0.89949622 0.332354675 2.706435 0.009789 Expenditure 0.79326242 0.172211478 4.606327 0.000037 What is the predicted increase in the crime rate associated with a one unit increase in education, holding constant wage, youth, and expenditure? a. -111.69 b. 1.67 c. 72.61 d. 3.31 16. A researcher estimates the model crime = β 0 + β 1 education + β 2 wage + β 3 youth + β 4 Expenditure + ε . She obtains the results below. Coefficients Standard Error t Stat P-value Intercept -111.688723 72.60820393 -1.53824 0.131491 5
Education 1.66861011 3.305592294 0.504784 0.616349 Wage 0.00332358 0.065738859 0.050557 0.959918 Youth 0.89949622 0.332354675 2.706435 0.009789 Expenditure 0.79326242 0.172211478 4.606327 0.000037 The estimate for which coefficients are significant at the 5% level? a. β 1 , β 2 b. β 1 , β 3 c. β 3 4 d. β 2 4 17. Consider the sample regression equation ^ y = 39 + 1.5 x . If x increases by 4 units, what is the predicted change in Yhat? a. 1.5 b. 6 c. 39 d. 45 18. A research wants to estimate the linear regression model y = β 0 + β 1 x + ε to study the relationship between salary and years of education among workers in middle-age. Which variable should be used as the Y? a. Salary b. Years of education c. Workers d. Workers in middle-age 19. A researcher models the crime rate as a function of the average wage within a state. Below is a portion of her results. Regression Statistics Multiple R 0.4248 R Square 0.1805 Adjusted R Square 0.1622 Standard Error 26.445 6
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help