08 Func Forms

In the model ln(y) = beta * ln(x), beta can be interpreted as:

• elasticity

• semi-elasticity

• unit change

• none of the above

You can find the group means over gender of binary variable married using the following Stata command:

• All of them

• reg active male

• reg active male female, nocons

• mean active, over(male)

Choose the correct statement:

• The smaller the AIC, the worse the model (given the same sample) is.

• We cannot compare the models using R squared adjusted (given the same sample).

• The greater the BIC, the better the model (given the same sample) is.

• None of the above.

What does RESET test stand for?

• Ramsey Error Specification Estimation Test.

• It does not have a meaning.

• Regression Equation Specification Error Test.

• Regression Equation Specification Estimation Test.

You ran "estat ovtest" in Stata after estimation and got p-value of 0.001. What would you do?

• You reject the null hypothesis that your model is misspecified.

• You do not reject the null hypothesis that your model is misspecified.

• You reject the null hypothesis that your model is correctly specified

• You do not reject the null hypothesis that your model is correctly specified.