Introductory Econometrics A Modern Approach 5th Edition by Jeffrey M. Wooldridge-Test Bank

ISBN-10:053845217X , ISBN-13:978-0538452175Test Bank For Introductory Econometrics A Modern Approach 5th Edition by Jeffrey M. Wooldridge

ISBN-10:1111531048 , ISBN-13:978-1111531041

Chapter 5

1. Which of these statements is accurate?

a. The typical error of a regression, , may not be an unbiased estimator for , the typical deviation of the error, u, in a multiple regression model.

b. OLS estimators are always unbiased in time series regressions.

c. The majority of economists concur that unbiasedness is a fundamental requirement for an estimator in regression analysis.

d. All estimators in a regression model that are consistent are also unbiased.

Answer: b

Problem: Average

Bloom’s: Knowledge

Title: Consistency

BUSPROG:

Suggestions: The typical error of a regression may not be an unbiased estimator for the typical deviation of the error in a multiple regression model.

2. Should j, an unbiased estimator of j, be consistent, then the:

a. distribution of j becomes progressively less spread out around j as the sample size increases.

b. distribution of j becomes progressively more concentrated around j as the sample size increases.

c. distribution of j tends towards a standard normal distribution as the sample size increases.

d. distribution of j remains unchanged as the sample size grows.

Answer: b

Problem: Medium

Bloom’s: Knowledge

Title: Consistency

BUSPROG:

Suggestions: If j, an unbiased estimator of j, is consistent, then the distribution of j becomes progressively more concentrated around j as the sample size increases.

3. If j, an unbiased estimator of j, is also a consistent estimator of j, as the sample size tends to infinity:

a. the distribution of j collapses to a single value of zero.

b. the distribution of j diverges away from a single value of zero.

c. the distribution of j collapses to the single point j.

d. the distribution of j diverges away from j.

Answer: c

Problem: Simple

Bloom’s: Knowledge

Title: Consistency

BUSPROG:

Suggestions: If j, an unbiased estimator of j, is also a consistent estimator of j, then as the sample size tends to infinity, the distribution of j collapses to the single point j.

4. Within a multiple regression model, the OLS estimator is consistent if:

a. there is no correlation between the dependent variables and the error term.

b. there is a perfect correlation between the dependent variables and the error term.

c. the sample size is less than the number of parameters in the model.

d. there is no correlation between the independent variables and the error term.

Answer: d

Problem: Average

Bloom’s: Knowledge

Title: Consistency

BUSPROG:

Suggestions: In a multiple regression model, the OLS estimator is consistent if there is no correlation between the explanatory variables and the error term.

5. In case the error term is correlated with any of the independent variables, the OLS estimators are:

a. biased and consistent.

b. unbiased and inconsistent

c. biased and inconsistent.

d. unbiased and consistent.

Answer: c

Problem: Simple

Bloom’s: Knowledge

Title: Consistency

BUSPROG:

Suggestions: If the error term is correlated with any of the independent variables, then the OLS estimators are biased and inconsistent.

Test Banks Related to Economics

Test Bank For Introductory Econometrics A Modern Approach 6th Edition by Jeffrey M. Wooldridge

Test Bank For Introductory Econometrics A Modern Approach 5th Edition by Jeffrey M. Wooldridge