Econometrics
Lecturer: Đinh Văn Thành - K55 KTQT
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MULTIPLE-CHOICE QUESTIONS – CHAPTER 1 AND 2
Question 1: Given a 2-variable linear regression model estimated from a dataset with 200 observations.
Know that ∑ 𝑿𝒊 = 672,5, ∑ 𝒀𝒊 = 1562,43, ∑ 𝑿𝒊 𝒀𝒊 = 5349,86 TSS = Y - Y trung bình
𝟐 ̅ 𝟐 ̅ 𝟐
∑ 𝑿 = 2857,25, ∑(𝒀 − 𝒀) = 86,851, ∑(𝑿 − 𝑿) = 595,969, RSS = 71,326 ESS =
𝒊 𝒊 𝒊
Calculate the coefficient of determination of the model?
A. Other answer B. 0,821 C. 0,3602 D. 0,534
Question 2: Suppose we want to use econometrics to study the impact of the number of students on the
average final grade of students in credit classes. Which is NOT the purpose of econometric studies in
this case?
(1) Quantify the effect of the number of students on the average final score.
(2) Test whether the number of students in a credit class affects the average final grade.
(3) Predict the number of students in a credit class when the average final course score is known.
A. (2) and (3) B. (1) and (2) C. Only (1) D. Only (3)
Question 3: Consider a 2-variable linear regression model estimated from a dataset with 200
observations.
Know that ∑ 𝑿𝒊 = 672,5, ∑ 𝒀𝒊 = 1562,43, ∑ 𝑿𝒊 𝒀𝒊 = 5349,86.
̅ )𝟐 = 86,851, ∑(𝑿𝒊 − 𝑿
∑ 𝑿𝟐𝒊 = 2857,25, ∑(𝒀𝒊 − 𝒀 ̅ )𝟐 = 595,969, RSS = 71,326.
Calculate the estimated intercept? B0 =
A. 7,664 B. 7,269 C. 7,846 D. Other answer
Question 4: Let the following regression model be estimated from a dataset with 323 observations:
̂ 𝒊 = 3253,8 +27,519𝑿𝒊
𝒀
At observation Y = 6345, X = 12, the value of the random error ui is?
A. 3584,028 B. 2760,972 C. 3760,972 D. Other answer
Question 5: The independent variable in the regression model has which of the following characteristics?
(1) Also known as the explanatory variable (independent)
(2) Is a random variable
(3) There can be 1 or more independent variables in a regression model
A. Only (2) B. (1) and (3) C. (2) and (3) D. Only (1)
Question 6: Which of the following statements is NOT true ?
(1) A normal distribution with degrees of freedom is (n - 1).
(2) The t-distribution is a symmetric distribution through zero.
(3) The observed values in the F distribution are always non-negative.
(4) Chi-squared distribution has 2 degrees of freedom.
A. (1) and (4) B. Only (2) C. Only (3) D. (2) and (3)
Question 7: Which of the following statements is NOT true about the simple linear correlation coefficient
r?
(1) The single linear correlation coefficient is in the range (0, 1). (-1;1)
(2) The single linear correlation coefficient has a value of 0,5, so the two variables are positively related
1
Econometrics
Lecturer: Đinh Văn Thành - K55 KTQT
Facebook: facebook.com/thanh.d.0715
(3) r = 0 means that the two variables are statistically independent of each other. independent => r=0
(4). In a 2-variable linear regression model, the linear correlation coefficient between the independent
variable and the dependent variable is equal to the coefficient of determination of the regression model.
A. (2) and (3) B. (1), (3) and (4) C. Other answer D. (1), (2) and (3)
Question 8: What is an example of time series data?
(1) Number of new securities accounts opened in October 2021
(2) Number of students in each credit class phase 2 – semester I, academic year 2021 – 2022
(3) Highest temperature of the day in Hanoi from 10/10/2021 to 20/10/2021
(4) Electricity consumption of each household in Hoang Mai district in October 2021
A. Only (1) B. (1) and (3) C. Only (3) D. (2) and (4)
Question 9: Let a random variable X have the following probability distribution table:
X 2 5 9 10
P(xi) 0,4 0,4 ? 0,1
What is the variance of the variable X, or var(X)=? E(x bình) - E(x)bình = variance
A. 7,61 B. 25 C. 29,7 D. 4,7
Question 10: Arrange the following steps in the correct order in the methodology of econometrics
(1) Theoretical research
(2) Model testing
(3) Model building
(4) Model estimation
A. (3)-(1)-(4)-(2) B. (3)-(1)-(2)-(4) C. (1)-(2)-(3)-(4) D. (1)-(3)-(4)-(2)
Var(Y)=Var(4X) => Var(Y) = 16Var(X)
Question 11: Let Y = 4X + 3. Know that X’s variance is 2, what is the variance of Y?
A. 35 B. 11 C. Other answer D. 32
Question 12: Let the covariance matrix between the variables as follows:
Cov X Y Z
X 0,4364
Y -0,7863 5,322
Z 0,4834 -1,4961 2,9948
What is the correlation coefficient between X and Z?
A. -0,516 B. 0,4834 C. Not enough information is available to determine D. 0,4228
Question 13: Let the following regression model be estimated from a dataset with 323 observations:
̂ 𝒊 = 3253,8 +27,519𝑿𝒊
𝒀
If we change the unit of Y satisfying Y' = 2*Y. What will the estimated intercept and slope of the new
regression model be?
A. 1626,9 and 13,7595 C. 6507,6 and 55,038
B. 3253,8 and 27,519 D. 3253,8 and 13,7595
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Econometrics
Lecturer: Đinh Văn Thành - K55 KTQT
Facebook: facebook.com/thanh.d.0715
Question 14: Given a 2-variable sample regression model estimated from a dataset with 60 observations.
Know that TSS = 723 and that the standard error of the residual is 5,61. Calculate the coefficient of
determination of the model? xích ma = se
A. 0,534 B. 0,466 C. 0,45 D. 0,55
Question 15: The linear correlation coefficient between X and Y has a value of 0,36. If X' = 0,5*X and
Y' = Y + 3, what is the correlation coefficient between X' and Y?
A. 0,36 B. 0,72 C. 0,18 D. Other answer
Question 16: Consider a 2-variable linear regression model estimated from a dataset with 200
observations.
Know that ∑ 𝑿𝒊 = 672,5, ∑ 𝒀𝒊 = 1562,43, ∑ 𝑿𝒊 𝒀𝒊 = 5349,86.
̅ )𝟐 = 86,851, ∑(𝑿𝒊 − 𝑿
∑ 𝑿𝟐𝒊 = 2857,25, ∑(𝒀𝒊 − 𝒀 ̅ )𝟐 = 595,969, RSS = 71,326.
What is the value of the estimated slope?
A. 0,1614 B. -0,01 C. Other answer D. 0,044
Question 17: Which of the following statements is NOT true about the parameters in the population
regression model?
(1) The parameters can take different values with different data sets.
(2) It is possible to determine the exact value of the parameters even in the absence of population data.
(3) The parameter in the population regression model is ui.
A. (1) and (3) B. Different answer C. (2) and (3) D. Only (1)
Question 18: Let the covariance matrix between the variables as follows: p(x,y) = cov(x,y)/ơ x * ơ y
Cov X Y Z
X 0,4364
Y -0,7863 5,322
Z 0,4834 -1,4961 2,9948
What is the correlation coefficient between X and Y?
A. -0,516 B. 1,524 C. Not enough information to determine D. -0,7863 =-0.7863/căn 0,4364
* căn 5,322
Question 19: Given that X, Y, Z are random variables and Z = 0,6X + 1,2Y + 2. Know that var(X) = 2,
var( Y) = 4, cov(X,Y) = 1,2. Calculate the variance of the variable Z
A. 10,208 B. 8 C. 6,48 D. 8,208
Question 20: Let a random variable X have the following probability distribution table
X 2 5 9 10
P(xi) 0,4 0,4 ? 0,1
What is the expected value of the variable X, or E(X)=?
A. Other answer B. 7,61 C. 25 D. 6,5
Question 21: Which of the following is a linear regression model?
(1) lnYi = β0 + β1Xi + ui
(2) lnYi = β0 + β1*(1/Xi) + ui
3
Econometrics
Lecturer: Đinh Văn Thành - K55 KTQT
Facebook: facebook.com/thanh.d.0715
(3) Yi = 1/β0 + β1*(l/Xi) + ui
A. Other answer B. Only (1 ) C. (1) and (2) D. (2) and (3)
Question 22: Consider a 2-variable linear regression model estimated from a dataset with 200
observations.
Know that ∑ 𝑿𝒊 = 672,5, ∑ 𝒀𝒊 = 1562,43, ∑ 𝑿𝒊 𝒀𝒊 = 5349,86.
̅ )𝟐 = 86,851, ∑(𝑿𝒊 − 𝑿
∑ 𝑿𝟐𝒊 = 2857,25, ∑(𝒀𝒊 − 𝒀 ̅ )𝟐 = 595,969, RSS = 71,326.
Calculate the variance of the estimated intercept?
A. 0,3602 B. 0,008 C. 0,093 D. Other answer
Question 23: Let the following regression model be estimated from a dataset with 323 observations:
̂ 𝒊 = 3253.8 +27,519𝑿𝒊
𝒀
If you change the units of X satisfying X' = 2*X. What will the estimated intercept and slope of the new
regression model be?
A. 1626,9 and 13,7595 C. 6507,6 and 55,038
B. 3253,8 and 13,7595 D. 3253,8 and 27,519
Question 24 Given that X, Y, Z are random variables and Z = 0,6X + 1,2Y + 2. We know that E(X) = 2,
E(Y) = 4. Calculate the mean of Z?
A. Other answer B. unknown C. 6 D. 8
Question 25: Which is NOT a characteristic of random error according to the assumptions of the
classical linear regression model?
(1) The expected random error is equal to the difference between the observed value and the conditional mean
of the dependent variable.
(2) The variance of the random error for different values of the independent variable is different.
(3) The random errors are correlated with each other.
A. (2) and (3) B. (1) and (2) C. Only (3) D. (1), (2) and (3)
Question 26: Which of the following factors affects the accuracy of the OLS estimates in the 2-variable
regression model ?
(1) Variation of dependent variable
(2) Variation of the explanatory variable
(3) Correlation between independent variable and dependent variable
(4) Variance of random error
A. (1) and (2) B. (2) and (3) C. (1) and (4) D. (2) and (4)
Question 27: Company X has a portfolio with two investments A and B, of which investment A accounts
for 20%. Expected interest rates on two investments A and B are 0,3 and 0,35, respectively. Given that
the variance of the interest rates of the two investments is var(RA) = 0,0049, var(RB) = 0,01, and the
covariance cov(RA,RB) = 0,3. 0.2*Ra + 0.8*Rb = 0.2*0.3+0.8*0.35
What is the expected rate of return on the investment portfolio of company X?
A. 0,34 B. 0,31 C. Other answer D. 0.325
