Mathematical Economics-Online Practice Exam 6
Mathematical Economics-Online Practice Exam 6

Mathematical Economics-Online Practice Exam 6

NET / SET Online Practice Exams

Test

Multi-choice 6

Question

1. If the regression equation is a perfect estimator of the dependent variable then which of the following is not true ?

Answers

All the data points fall on the regression line

The coefficient of determination is 1-00

 The standard error of estimate is zero

The coefficient of correlation is zero

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Question

2. The extent to which the observed values of the depended variable differ from the predicted values according to the regression line is measured by-

Answers

 the slope of the regression line

the intercept of the regression line

the coefficient of determination

the standard error of estimate

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Question

3. If the co-variance between two variables is positive then, the coefficient of correlation between them will be in the range of-

Answers

 0 to -1-00

0 to -.50

 0 to 1-00

 0 to -.25

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Question

4. The variances of variables, x and y, are 49 and 16 respectively, and the covariance between them is 14. What is the coefficient of correlation between x and y ?

Answers

0.75

0.25

 0.50

 0.10

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Question

5. For a simple linear regression equation Σ(y – ŷ)2 = 256 and the standard error of estimate is 4. What is the number of observations ?

Answers

12

18

21

19

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Question

6. The regression relationship between the variables x and y is given by ŷ = 4 + 5 x and, it explain 64% of the changes in the variable y. What is the coefficient of correlation between x and y ?

Answers

0.80

-0.80

-0.18

-0.08

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Question

7. Which of the following is correct with regard to the method of least squares used in simple regression analysis ?

Answers

It minimizes the sum of the squared values of the independent variable

It minimizes the sum of the squared differences between the values of the independent variable and their mean

It minimizes the sum of the squared differences between the actual values of the dependent variable and the estimated values of the dependent variables as per the regression equation

 It minimizes the sum of the squared values of the dependent variables

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Question

8. If a regression line is represented by Y = 1.5 – 2.0x and the coefficient of determination is 0.49, then the coefficient of correlation is

Answers

-0.70

-0.07

0.80

-0.08

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Question

9. If the variance of x and y are 2.56 and 6.25 respectively, and the covariance between them is 3.20 then the coefficient of correlation between x and y is-

Answers

0.80

0.50

-0.56

0.007

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Question

10. The standard error of estimate is developed from the variations of the

Answers

observed values of the dependent variable around the fitted regression line

observed values of the dependent variable around the mean of the observed values of the independent variable

observed values of the dependent variable around a fixed quantity

 observed values of the independent variable

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