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MCQs Econometrics

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The post contains MCQs about Econometrics, which cover the topics of Correlation and Regression analysis, dummy variables, multicollinearity, heteroscedasticity, autocorrelation, and many other topics. Let’s start with the MCQs Econometrics test

MCQs Econometrics Quizzes

MCQs Econometrics Quiz 5
MCQs Econometrics Statistics 4Basic Econometrics MCQs 3
MCQs Econometrics Quiz 2MCQs Econometrics 1

Econometrics

Econometrics is the branch of economics that applies statistical techniques for the analysis of economic data. The econometricians try to test hypotheses by using different statistical techniques and they try to forecast future trends.

  1. Regression Analysis: A fundamental tool in econometrics used for estimating the relationship between a dependent variable (DV) and one or more independent variables (IVs). Both linear regression and nonlinear regression models are implied in economics.
  2. Time Series Analysis: It deals with analyzing data collected over time. Time Series Analysis includes techniques for detecting trends, and seasonal patterns, and also forecasting future values.
  3. Panel Data Analysis: Panel data refers to data that is collected over multiple cross-sectional units and time periods. Panel data analysis techniques allow economists to account for both time series and cross-sectional variation.
  4. Hypothesis Testing: Econometricians use statistical tests to assess the significance of relationships and parameters estimated in their models. Common tests include t-tests, F-tests, and likelihood ratio tests.
  5. Instrumental Variables: It is used to address endogeneity in regression analysis. Endogeneity occurs when the independent variables are correlated with the error term in a regression model. The instrumental variables methods aim to find variables that are correlated with the independent variables but not with the error term, thereby providing a way to estimate causal relationships.
  6. Time Series Econometrics: Time series econometrics focuses specifically on analyzing data that varies over time. This includes techniques such as autoregressive integrated moving average (ARIMA) models, vector autoregression (VAR), and cointegration analysis.
  7. Model Evaluation and Selection: The selection of a model is performed based on its performance. Model evaluation and selection techniques help to determine whether a model fits the data well and whether it is useful for prediction or inference.
  8. Multivariate Analysis: Multivariate regression, factor analysis, and principal component analysis are used to perform analysis on multiple variables.
MCQs Econometrics Quiz with Answers

In short, econometrics is a specialized branch of statistics that mainly focuses on economic data. It is used to test economic theories, estimate the parameters, and make forecasts.

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Online MCQs Econometrics Quiz 5

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This quiz is about Econometrics, which covers the topics of Correlation and Regression analysis, dummy variables, multicollinearity, heteroscedasticity, autocorrelation, and many other topics. Let’s start with the Online MCQs Econometrics Quiz.

MCQs about Econometrics for the preparation of Statistics and Econometrics related Examination and for the PPSC& FPSC and University job related to Lecturer in Statistics, and Statistical Officers.

1. When measurement errors are present in the explanatory variable(s) then parameter estimates become

 
 
 
 

2. The range of covariance between two variables is:

 
 
 
 

3. The range of partial correlation coefficient is:

 
 
 
 

4. Which one is NOT the rule of thumb?

 
 
 
 

5. Variance inflation factor is a common measure for:

 
 
 
 

6. Heteroscedasticity refers to a situation in which:

 
 
 
 

7. Generally, an acceptable value of variance inflation factor (VIF) is:

 
 
 
 

8. If the covariance between two variables is positive then their correlation coefficient will always be:

 
 
 
 

9. The dummy variable trap is caused by:

 
 
 
 

10. The high value of VIF indicates

 
 
 
 

11. Eigenvalues can be used for detecting violations of the assumption of:

 
 
 
 

12. A variable showing the presence or absence of something is known as:

 
 
 
 

13. Which of these tests is suitable for only a simple regression model?

 
 
 
 

14. The variance of regression slopes becomes infinite in the case of:

 
 
 
 

15. In a regression model with 3 explanatory variables, there will be ________ auxiliary regressions

 
 
 
 

16. In the case of homoscedasticity, we have:

 
 
 
 

17. The term Homoscedasticity means

 
 
 
 

18. If we have a categorical variable with 4 categories, then how many dummy variables can be used in with intercept regression model

 
 
 
 

19. The dummy variable trap can be avoided by:

 
 
 
 

20. In a multiple regression model, the ideal situation is:

 
 
 
 

An application of different statistical methods applied to the economic data used to find empirical relationships between economic data is called Econometrics.

The term Econometrics means “Economic Measurement”. Econometrics is the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of statistical inference.

Econometrics can also be defined as the empirical determination of economic laws. It can be classified as (i) Theoretical Econometrics and (ii) Applied Econometrics.

(i) Theoretical Econometrics

Theoretical econometrics is concerned with developing appropriate methods for measuring economic relationships specified by econometric models. Theoretical econometrics leans heavily on mathematical statistics and must spell out the assumptions of methods (such as Least Squares), their properties, and what happens to these properties when one or more of the assumptions of the technique are not fulfilled.

(ii) Applied Econometrics

In applied econometrics, the tools of theoretical econometrics are used to study special fields(s) such as production function, investment function, demand and supply function, portfolio theory, etc.

Online MCQs Econometrics Quiz with Answers

  • In a regression model with 3 explanatory variables, there will be ——— auxiliary regressions
  • The term Homoscedasticity means
  • A variable showing the presence or absence of something is known as:
  • The dummy variable trap is caused by:
  • The dummy variable trap can be avoided by:
  • Eigenvalues can be used for detecting violations of the assumption of:
  • Variance inflation factor is a common measure for:
  • In a multiple regression model, the ideal situation is:
  • Generally, an acceptable value of variance inflation factor (VIF) is:
  • If the covariance between two variables is positive then their correlation coefficient will always be:
  • The range of covariance between two variables is:
  • The range of partial correlation coefficient is:
  • Heteroscedasticity refers to a situation in which:
  • Which of these tests is suitable for only a simple regression model?
  • If we have a categorical variable with 4 categories, then how many dummy variables can be used in with intercept regression model
  • When measurement errors are present in the explanatory variable(s) then parameter estimates become
  • Which one is NOT the rule of thumb?
  • The variance of regression slopes becomes infinite in the case of:
  • The high value of VIF indicates
  • In the case of homoscedasticity, we have:

Types of Econometrics Data

Different types of data are used in Econometrics. There are three important types of data for empirical analysis:

  • Time Series Data
    A time series data is a set of observations on the values that a variable takes at different times. The time series data may be collected at regular time intervals such as daily, weekly, monthly, quarterly, annually, etc.
  • Cross-Sectional Data
    Cross-sectional data are data on one or more variables collected at the same point in time. Cross-sectional data has a problem of heterogeneity.
  • Pooled Data
    Pooled data is a combination of both time series and cross-sectional data.
Econometrics Quiz

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MCQs Econometrics Statistics 4

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This quiz is about MCQs Econometrics Statistics, which covers the topics of Regression analysis, correlation, dummy variables, multicollinearity, heteroscedasticity, autocorrelation, and many other topics. Let’s start with the MCQs Econometric Statistics Quiz.

Please go to MCQs Econometrics Statistics 4 to view the test

An application of different statistical methods applied to the economic data used to find empirical relationships between economic data is called Econometrics.

Econometrics means “Economic Measurement”. Econometrics is the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of statistical inference.

Econometrics can also be defined as the empirical determination of economic laws. Econometrics can be classified as (i) Theoretical Econometrics and (ii) Applied Econometrics.

(i) Theoretical Econometrics

Theoretical econometrics is concerned with developing appropriate methods for measuring economic relationships specified by econometric models. Theoretical econometrics leans heavily on mathematical statistics and must spell out the assumptions of methods (such as Least Squares), their properties, and what happens to these properties when one or more of the assumptions of the technique are not fulfilled.

(ii) Applied Econometrics

In applied econometrics, the tools of theoretical econometrics are used to study special fields(s) such as production function, investment function, demand and supply function, portfolio theory, etc.

MCQs Econometrics Statistics

  • Which one of the following is not a plausible remedy for near multicollinearity?
  • Which of the following could be used as a test for autocorrelation up to third order?
  • If we omit a relevant variable from the model ———-
  • Autocorrelation may be the result of ———-
  • One can test the pure randomness of residual from ———-
  • The term Heteroscedasticity means ———-
  • Collinearity or multicollinearity occurs whenever ———-
  • If there is no overlapping between regressors then ———-
  • What does a VIF of 1 mean?
  • Autocorrelation is most likely occurred in ———- data?
  • If measurement errors are present only independent variable, then the estimate remains:
  • The presence of heteroscedasticity does not destroy the ———- of OLS estimators.
  • The Durbin-Watson d test has no ———- for the rejection of the null hypothesis.
  • If the value of R-square between $X_2$ and $X_3$ approaches 1 then ———-.
  • Which of the following is an indication of the existence of multicollinearity?
  • The generalized least square estimators are also called:
  • Robust standard errors are the ones that are corrected by ———-.
  • In the case of multicollinearity, the confidence interval tends to be much ———-, leading to the acceptance of a zero null hypothesis.
  • Which of the following is an indication of the existence of multicollinearity?
  • One can test the pure randomness of residuals from

Types of Econometrics Data

Different type of data is used in Econometrics. There are three important types of data for empirical analysis:

  • Time Series Data
    A time series data is a set of observations on the values that a variable takes at different times. The time series data may be collected at regular time intervals such as daily, weekly, monthly, quarterly, or annually, etc.
  • Cross-Sectional Data
    Cross-sectional data are data on one or more variables collected at the same point in time. Cross-sectional data has a problem of heterogeneity.
  • Pooled Data
    Pooled data is a combination of both time series and cross-sectional data.
MCQs Econometrics Statistics

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Basic Econometrics MCQs 3

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This quiz is about Basic Econometrics MCQs with Answers, which cover the topics of Regression analysis, correlation, dummy variable, multicollinearity, heteroscedasticity, autocorrelation, and many other topics. Let’s start with the Basic Econometrics MCQs with Answers Quiz.

Please go to Basic Econometrics MCQs 3 to view the test

An application of different statistical methods applied to the economic data used to find empirical relationships between economic data is called Econometrics.

Econometrics means “Economic Measurement”. Econometrics is the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of statistical inference.

Econometrics can also be defined as the empirical determination of economic laws. Econometrics can be classified as (i) Theoretical Econometrics and (ii) Applied Econometrics.

(i) Theoretical Econometrics

Theoretical econometrics is concerned with developing appropriate methods for measuring economic relationships specified by econometric models. Theoretical econometrics leans heavily on mathematical statistics and must spell out the assumptions of methods (such as Least Squares), their properties, and what happens to these properties when one or more of the assumptions of the technique are not fulfilled.

(ii) Applied Econometrics

In applied econometrics, the tools of theoretical econometrics are used to study special fields(s) such as production function, investment function, demand and supply function, portfolio theory, etc.

Basic Econometrics MCQs

  • The rule of thumb is if k is between 100 and 1000 then there is _______ multicollinearity?
  • A system which has an infinite number of solutions has ______.
  • The existence of a perfect or near-to-exact linear relationship among some or all explanatory variables of a regression model is called
  • If $\rho$ is zero, then there is
  • Zero tolerance or VIF equal to one indicate
  • The log transformation is __________ if some of the $Y$ and $X$ values are zero or negative.
  • In the case of perfect multicollinearity, the OLS estimates are
  • In case of perfect or near-to-perfect multicollinearity, the OLS estimates are
  • The Glejser test is similar to _________.
  • If the calculated value of tolerance is 1, then there is an issue of
  • If $d*<d_l$ then we
  • An assumption about underlying the d statistics “The explanatory variable $X$’s are non-stochastic or fixed in __________”
  • Which combination of regressors might lead to perfect collinearity?
  • In the case of perfect multicollinearity, the $X’X$ is a ___________.
  • Durbin and Watson have suggested a test to detect the presence of autocorrelation which applies to
  • Which one assumption is not related to an error in the independent variable
  • The existence of a perfect or near-to-exact linear relationship among some or all explanatory variables of a regression model is called
  • What is the meaning of the term heteroscedasticity?
  • The generalized least square (GLS) is an efficient procedure that weights each squared residual by:
  • In a regression model with 3 explanatory variables, there will be __________ auxiliary regressions.

Types of Econometrics Data

Different type of data is used in Econometrics. There are three important types of data for empirical analysis:

  • Time Series Data
    A time series data is a set of observations on the values that a variable takes at different times. The time series data may be collected at regular time intervals such as daily, weekly, monthly, quarterly, annually, etc.
  • Cross-Sectional Data
    Cross-sectional data are data on one or more variables collected at the same point in time. Cross-sectional data has a problem of heterogeneity.
  • Pooled Data
    Pooled data is a combination of both time series and cross-sectional data.
Basic Econometrics MCQs

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