Mathematics

  1. What is Econometrics, according to Studenmund.
  2. Explain the following linear equation: Price = 40.0 + 0.138(1600) = 260.8
  3. What is a stochastic error term.
  4. What are the four assumptions of linear regression.
  5. What does a multivariate regression coefficient indicate.
  6. What is R-squared.
  7. Provide an example of an econometric model.
  8. What is a Dummy variable and its impact on the intercept and slope of the line.
  9. Explain heteroskedasticity.
  10. Explain generally the Gauss-Markov Theorem.
  11. Explain generally hypothesis testing, including Ho, Ha.
  12. What is meant by a one-tailed and two-tailed test.
  13. Define Type I and Type II Errors.
  14. What is the level of significance.
  15. What is meant by the quote, “The coefficient is statistically significant at the 5% level”