#1
What is the primary purpose of econometric analysis?
To analyze historical economic data
ExplanationAnalyzing historical economic data.
#2
Which of the following data types is categorical?
Ordinal
ExplanationCategorical data type.
#3
What is the primary assumption of the Ordinary Least Squares (OLS) estimator?
Independence of residuals.
ExplanationIndependence of residuals.
#4
In econometrics, what is the term for a variable that is not directly observed but is inferred from other observed variables?
Latent variable
ExplanationA variable inferred from other observed variables.
#5
What is the purpose of heteroscedasticity testing in econometrics?
To test for homoscedasticity
ExplanationTesting for homoscedasticity.
#6
In econometrics, what does the term 'stationarity' refer to?
A constant mean and variance over time
ExplanationConstant mean and variance over time.
#7
What is the purpose of the Durbin-Watson statistic in regression analysis?
To test for autocorrelation
ExplanationTesting for autocorrelation.
#8
What is the primary assumption of the classical linear regression model regarding the error term?
The error term is normally distributed with mean zero and constant variance.
ExplanationNormal distribution with mean zero and constant variance.
#9
What is the purpose of the Breusch-Pagan test in econometrics?
To test for heteroscedasticity
ExplanationTesting for heteroscedasticity.
#10
Which econometric method is suitable for handling endogeneity issues in regression analysis?
Instrumental Variables (IV)
ExplanationHandling endogeneity issues.
#11
Which type of bias occurs when there is an error in selecting individuals or groups for a sample in econometric analysis?
Selection bias
ExplanationError in selecting sample individuals or groups.
#12
What is the difference between panel data and time series data in econometrics?
Panel data involves observations on multiple cross-sectional units over time, while time series data involves observations on a single cross-sectional unit.
ExplanationDifference between panel and time series data.
#13
What is the purpose of the Jarque-Bera test in econometrics?
To test for normality of residuals
ExplanationTesting for normality of residuals.
#14
In panel data analysis, what does the term 'fixed effects' refer to?
Individual-specific characteristics that do not vary over time.
ExplanationCharacteristics not varying over time.
#15
What is the difference between endogeneity and exogeneity in econometrics?
Exogeneity refers to variables determined outside the model, while endogeneity refers to variables determined within the model.
ExplanationDifference between exogeneity and endogeneity.