Question Econometrics

03 Jun Question Econometrics

Question
Econometrics

1. When a decision maker has to choose between two mutually exclusive outcomes an econometrician may choose to use a

A) binary choice model

B) ECM

C) Random effects model

D) Fixed effects model

2. When testing hypotheses of probit or logit coefficients, what 2 statistical tests ate generally used?

A) Wlad and likelihood ratio

B) Z-test and t-test

C) LM and Hausman

D) F-test and R squared

3. When is a Tobit model used

A) When you have censored data

B) For categorical data with a normally distributed error term

C) When you want to combine a probit and multinomial logit

D) to estimate varying marginal effects in a binary choice model

4. What is the primary advantage of using panel data rather than a large cross- section data set collected over time?

A) It allow you to control for individual heterogeneity

B) It allows the effects of legislation to be estimated

C) It gives you more degrees of freedom

D) It allow coefficients to vary over time

5. What is the difference between balanced and unbalanced panels?

A) Unbalanced panels have some observations missing, balanced do not

B) Balanced panels are demographically representative of the population being studied, unbalanced are not

C) Balanced panels have an equal number of observations above and below the mean of the dependent variable, unbalanced panels are skewed

D) A balanced panel has T = N, an unbalanced panel has N>T or N

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