Econometrics Questions

The example of momentum p is the product of the mass m and the velocity v of an object; that is, p=mv, is an example of a ____________________ relationship.

If a linear regression model uses only one predictor variable, then the model is referred to as a '______________' linear regression model

Instead of se2,we generally report the standard deviation of the residual, denoted se, more commonly referred to asThe descriptive statisticGoodness-of-fitThe standard error of the estimateThe standard deviation of the sample

If the value of the response variable is uniquely determined by the values of the predictor variables, we say that the relationship between the variables is:RegressiveDeterministicRandomStochastic

A dummy variable, also referred to as an indicator or a binary variable, takes on numerical values of 1 or 0 to describe two categories of a categorical variable.For a predictor variable that is a dummy variable, it is common to refer to the category that assumes a value of 0 as: Please select all that apply.Multiple select question.Benchmark categoryReference categoryRegression dummyDummy category

Select all that applyNote that for the exponential model, we compute y ̂ t in regular units and not in natural logs. The resulting y ̂ t also enables us to compare the linear and the exponential models in terms of which of the following? (Select all that apply!).MSeMAPERSFEMAD

Time series forecasting models consist of which components? the trend, the seasonal, the cyclical, and the random components.The trend componentsThe moving average componentThe cyclical componentsThe seasonal components

When is the use of the Holt exponential smoothing method appropriate?Multiple select question.When the time series exhibits no trendWhen the time series exhibits trend but no seasonalityWhen the time series exhibits seasonality but no trendWhen the time series has been deseasonalized.

The Holt exponential smoothing method incorporates long-term upward or downward movements of a time seriesTrueFalse

Sometimes a time series reverses direction, due to any number of circumstances. A common method for forecasting this type of series is: Select the correct answer!Exponential trend modelPolynomial trend modelQuadratic modelDouble exponential trend model

The exponential trend model is attractive when the expected increase in the series gets smaller over time.TrueFalse

In-sample criteria do not help us assess how well an estimated model will predict in an unseen sample.TrueFalse

With quarterly data, an exponential trend model with seasonal dummy variables isspecified as ln(y) = β 0 + β 1 d 1 + β 2 d 2 + β 3 d 3 + β 4 t + ε.. What does the d2 represent?The second estimateThe second year dummy variableThe quarter 2 dummy variableThe quarter 3 dummy variable

The Holt-Winters exponential smoothing method is further divided into '________________' and multiplicative structures depending on the type of seasonality exhibited by the series.

'____________________' is a procedure for continually revising the forecast in the light of more recent observations.

Select all that applyIn the case of simple exponential smoothing, forecasts are weighted averages of past observations, with the weights decaying exponentially as the observations get older. Recall the smoothing parameter α: which of the following is true of α? Select all that apply!Multiple select question.With larger values of α, we pay attention mainly to the most recent observationsα is a smoothing parameterWith smaller values of α, greater emphasis is on past observationsWith larger values of α, we pay attention mainly to the oldest observations

For quarterly data, we need to define only two dummy variables, using the other two quarters as reference.TrueFalse

The Holt-Winters exponential smoothing method uses '_________________________' recursive equations to smooth the series for level, L; trend, T; and seasonality, S.

Click and drag on elements in orderThe linear trend model is used for a time series that is expected to grow by a fixed amount each time period. What are the steps in applying the linear trend model? Please choose the steps in the correct order.InstructionsDrag and drop application.Estimate and interpret the linear trend modelCollect the time series dataVisually inspect the time series to confirm the existence of a trendForecast the variable of interest

Which of the following is true of the Holt-Winters exponential smoothing method? Please select all that apply!The Holt-Winters method is also called double exponential smoothingExtends the Holt exponential smoothing model to include trendThe Holt-Winters methods is also called triple exponential smoothingExtends the Holt exponential smoothing model to include seasonality