5 Questions
What are the assumptions A1-A4 for the linear model Y = X\beta + U?
The assumptions A1-A4 for the linear model Y = X\beta + U are: 1) mean independent error E[U |X] = 0, 2) no multicollinearity/full rank of E[XX^T], 3) random (iid) sampling, and 4) conditionally homoskedastic error.
If the error U satisfies V ar [U |X] = \gamma^T X, where \gamma is a vector of constants, is OLS the best linear unbiased estimator (BLUE)?
Yes, if the error U satisfies V ar [U |X] = \gamma^T X, where \gamma is a vector of constants, then OLS is the best linear unbiased estimator (BLUE).
Why are the usual OLS based standard errors incorrect when the error is conditionally homoskedastic?
The usual OLS based standard errors are incorrect when the error is conditionally homoskedastic because the variance estimator is inconsistent.
What are the consequences of guessing on the True or False section of the exam?
Each correct answer gains 2 credits, each wrong answer loses 1 credit, and no answer receives 0 credits. It is advised not to guess if uncertain.
What is the maximum number of credits that can be earned on the True or False section of the exam?
The maximum number of credits that can be earned on the True or False section of the exam is 16.
Prepare for the ECON 320 final exam with this practice test. Follow the instructions for a timed 90-minute session to earn up to 50 credits. Focus on answering all questions and use hints and suggestions provided.
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