Econometric - Lecture 2

Which of the following is not a diagnostic checking?

• Heteroscedasticity

• Autocorrelation

• Multicollinearity

• Demean

Which of the following techniques to test the autocorrelation?

• White test

• Breusch-Pagan LM test

• Ramsey Reset test

• Jarque-Bera test

Which of the following is the correct inference for log-linear model?

• 1 unit change in X will induce a β2 unit change in Y

• 1 percent change in X will induce a β2/100 unit change in Y

• 1 unit change in X will induce a 100β2 percent change in Y

• 1 percent change in X will induce a β2 percent change in Y

Which of the following is correct about the correlation?

• Correlation measures the strength of the linear relationship between two variables.

• The correlation between two random variables is a dimensionless number between 1 and -1.

• Correlation misses nonlinearities completely.

• All of the above.

Which one is correct about the causality?

• Bidirectional :  ‘x’ being a cause of ‘y” but “y” is not being a cause of “x” (x à y) (y→ x)

• Unidirectional :  ‘x’ being a cause of ‘y” and “y” is being a cause of “x” (x ↔ y)

• Neutral : ‘x’ is not being a cause of ‘y” and “y” is not being a cause of “x”

• Causality cannot be used for time series.