Question:

Regression analysis:

A.

measures the demand for a good

B.

measures growth

C.

establishes cause and effect

D.

establishes a relationship between two variables

Answer» d. establishes a relationship between two variables

Question:

If b = 0 the line of best fit will conventionally be drawn ______

A.

as horizontal

B.

as vertical

C.

as provides the best fit to the scores

D.

through the middle of the data points

Answer» a. as horizontal

Question:

The price relative is a price index that is determined by

A.

(price in period t/base period price)(100)

B.

(base period price/price in period t)(100)

C.

(price in period t + base period price)(100)

D.

none of the above

Answer» a. (price in period t/base period price)(100)

Question:

The starting point of econometric analysis is

A.

model specification

B.

formulation of alternative hypothesis

C.

formulation of null hypothesis

D.

collection of data

Answer» c. formulation of null hypothesis

Question:

The index number for the price of a good in 2002 was 142 and in 2003, it was 148.5, ona base year of 1994. What is the percent increase in price of gasoline from 2002 to 2003

A.

4.377%

B.

4.577%

C.

95.62%

D.

6.5%

Answer» b. 4.577%

Question:

In regression, the variable being predicted is called the

A.

criterion or y variable

B.

predictor variable or x

C.

x

D.

explanatory variable

Answer» a. criterion or y variable

Question:

Price relative is equal to

A.

×

B.

×

C.

ℎ × 100

D.

ℎ × 100

Answer» a. ×

Question:

You are constructing a histogram that is required to use 6 classes for a data set that rangesfrom 15 to 70. A class width of ____ units would be an appropriate choice

A.

9

B.

10

C.

15

D.

6

Answer» b. 10

Question:

How might an extreme value in the sample data set affect the value of the mean

A.

an extreme value cannot affect the mean if it is close to the mean

B.

all values are treated equally when determining the mean, so an extreme value cannot affect it

C.

since all values are summed, any extreme value can influence the mean to a large extent

D.

one extreme value is still only one value, so it cannot affect the mean very much

Answer» c. since all values are summed, any extreme value can influence the mean to a large extent

Question:

Correlation refers to

A.

the causal relationship between two variables

B.

the association between two variables

C.

the proportion of variance that two variables share

D.

a statistical method that can only be used with a correlational research design

Answer» b. the association between two variables