Econometrics - 3

Autocorrelation is:

• the correlation of a time series with its own past and future values

• related to error term

• violates the CLRM

• associates with time series model

Heteroscedasticity is associated with:

• Time series data

• Cross-sectional data

• Panel Data

• Unbalanced Panel Data

1. In regression analysis, the values are fixed for the

• a. Explanatory variables

• a. Dependent variables

• a. All variables

• a. None of the variables

1. Regression analysis is concerned with the study of the dependence of:

• a. Explanatory variables on one or more dependent variables

• a. Dependent variables on one or more explanatory variables

• a. Both explanatory and dependent variables on other variables

• a. Two known variables

1. Stochastic variables are:

• a. Deterministic values

• Non-random value

• Imply causation

• Have probability distribution

1. In correlation analysis we measure the:

• Degree of linear association between two variables

• Degree of causation between two variables

• Predictability of the two variables

• Regression between the two variables

1. Data collected for a variable over a period of time is called:

• Cross-sectional data

• Time series data

• Pooled data

• Panel data

(There may be more than one correct answer)

Which of the following is an assumption in regression?

• homoscedasticity

• heteroscedasticity

• serial correlation

• autocorrelation

• multicollinearity

(There may be more than one correct answer)

In OLS regression, the task is to minimize ___.

• Explanatory Sum Squares

• Residual Sum Squares

• Total Sum Squares

• Regression Sum Squares

• Unexplained Sum Squares

(There may be more than one correct answer)

Correlation between the explanatory variables is described as ___.

• homoscedasticity

• heteroscedasticity

• serial correlation

• autocorrelation

• multicollinearity