# Important MCQs Econometrics 1

This Quiz is about MCQs Econometrics, which covers the topics of Regression analysis, correlation, dummy variable, multicollinearity, heteroscedasticity, autocorrelation, and many other topics. Let’s start with MCQs Econometric test

MCQs about Multicollinearity, Dummy Variable, Selection of Variables, Error in Variables, Autocorrelation, Time Series, Heteroscedasticity, Simultaneous Equations, and Regression analysis

1. Heteroscedasticity is more common in

2. In a linear regression model, what is the area surrounding the regression line that describes the uncertainty around the predicted outcome at every value of X?

3. Choose a true statement about the Durbin-Watson test

4. The value of Durbin Watson $d$ lies between

5. The AR(1) process is stationary if

6. The _____ states that no two independent variables ($X_i$ and $X_j$) can be highly correlated with each other.

7. What is a nonlinear function that connects or links a dependent variable to the independent variables mathematically?

8. Which one assumption is not related to error in explanatory variables?

9. In a regression model with three explanatory variables, there will be _______ auxiliary regressions

10. What type of regression models a categorical variable based on one or more independent variables?

11. Negative autocorrelation can be indicated by which of the following?

12. Autocorrelation may occur due to

13. Which of the following statements is true about autocorrelation?

14. For the presence and absence of first-order autocorrelation valid tests are

15. Heteroscedasticity can be detected by plotting the estimated $\hat{u}_i^2$ against

16. What technique models a categorical variable based on one or more independent variables?

17. Which one is not the rule of thumb?

18. If a Durbin Watson statistic takes a value close to zero what will be the value of the first-order autocorrelation coefficient?

19. When measurement errors are present in the explanatory variable(s) they make

20. Which of the actions does not make sense to take in order to struggle against multicollinearity?

An application of different statistical methods applied to the economic data used to find empirical relationships between economic data is called Econometrics. In other words, Econometrics is “the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference”.

• In a regression model with three explanatory variables, there will be auxiliary regressions
• The AR(1) process is stationary if
• The value of Durbin Watson $d$ lies between
• Which of the actions does not make sense to take in order to struggle against multicollinearity?
• Autocorrelation may occur due to
• Negative autocorrelation can be indicated by which of the following?
• Which one is not the rule of thumb?
• Heteroscedasticity can be detected by plotting the estimated $\hat{u}_i^2$ against
• If a Durbin Watson statistic takes a value close to zero what will be the value of the first-order autocorrelation coefficient?
• Which of the following statements is true about autocorrelation?
• When measurement errors are present in the explanatory variable(s) they make
• Heteroscedasticity is more common in
• Which one assumption is not related to error in explanatory variables?
• For the presence and absence of first-order autocorrelation valid tests are
• Choose a true statement about the Durbin-Watson test
• What technique models a categorical variable based on one or more independent variables?
• What is a nonlinear function that connects or links a dependent variable to the independent variables mathematically?
• What type of regression models a categorical variable based on one or more independent variables?
• In a linear regression model, what is the area surrounding the regression line that describes the uncertainty around the predicted outcome at every value of $X$?
• The states that no two independent variables ($X_i$ and $X_j$) can be highly correlated with each other.