Welcome to your Basics of Econometrics

1. What is the primary goal of econometrics?

2. In the context of econometrics, what does OLS stand for?

3. Which of the following is an assumption of the classical linear regression model?

4. Which of the following indicates that a model is suffering from multicollinearity?

5. What is the null hypothesis in a typical t-test for a regression coefficient?

6. Which of the following best describes heteroscedasticity?

7. What is the purpose of the Durbin-Watson statistic in econometrics?

8. In a simple linear regression model, what does the R-squared value represent?

9. Which of the following is a common method for detecting heteroscedasticity?

10. What does it mean if the residuals of a regression model are normally distributed?

11. What is the purpose of a hypothesis test in econometrics?

12. Which of the following problems arises when the independent variables in a regression model are highly correlated?

13. What is meant by the term "endogeneity" in the context of econometrics?

14. In a regression model, what is the consequence of omitting a relevant variable?

15. What is the meaning of a p-value in hypothesis testing?

16. Which of the following statements is true about the F-test in a regression model?

17. In the context of regression, what is a "dummy variable"?

18. What does the term "blue" stand for in the context of econometric estimation?

19. What does the adjusted R-squared value account for that the regular R-squared does not?

20. In econometrics, what is a "cross-sectional" dataset?