Y = β1 + β2X2 + ·· ·+βkXk + u is a k variable regerssion model. In this model we keep the variable Xk in the model only if:

• A) Its p-value is less than alpha.
• B) Its t-value is greater than two.
• C) All of the given options.
• D) It is significant.

Starting with a smaller model and expanding it as one goes along is a strategy of building a model which is called:

• A) Bottom-down approach.
• B) None of the given options.
• C) Top-down approach.
• D) Bottom-up approach.

This is the output window of Unit root test at level for Export series. Which of the following is true?

• A) This shows that the series is non-stationary as p-value is insignificant.
• B) None of the given options.
• C) This shows that the series is stationary as the p-value is significant.
• D) This shows that the series is non-stationary with a constant and linear trend.

We can analyze the cross section effect in a Panel data by using which of the following:

• A) All of the given options
• B) View→Fixed/Random Effects→Period Effects
• C) View→Fixed/Random Effect Testing→Hausman test
• D) View→Fixed/Random Effects→Cross-section Effects

ln Yi = B1 + B2 ln Xi + ui is a regression model. In this model B2 represents:

• A) All of the given options.
• B) Intercept term.
• C) Residual term.
• D) Slope coefficient of Y with respect to X.

If all the variables of interest under study are integrated at order I(1) then which of the following approach for estimation is appropriate?

• A) ARDL
• B) OLS
• C) None of the given option.
• D) Johansen Cointegration

Which of the following Panel data is available on WDI?

• A) East Asia and Pacific
• B) All of the given options
• C) Euro Area
• D) Europe and Central Asia

Regression-through-the-origin is an example of which of the following models?

• A) The model having an intercept term is equal to two.
• B) The model having an intercept term is equal to one.
• C) The model having an intercept term is equal to three.
• D) The model having an intercept term is equal to zero.

The type of relationship which exists between the dependent and independent variables can be detected by:

• A) Pie Chart.
• B) All of the given options.
• C) Histogram.
• D) Scatter plot.

Under-fitting a model cause which of the following?

• A) Incorporating the unnecessary variables.
• B) All of the given options.
• C) Omitting relevant variables.
• D) Including the irrelevant variables.

The Trial and Error method is used for the estimation of:

• A) Intrinsically linear regression model.
• B) Non-linear regression model.
• C) All of the given options.
• D) Linear regression model.

Which one of the following is a source of data for Economical variables?

• A) All of the given options.
• B) IFS(International Financial Statistics).
• C) World development Indicator.
• D) Asian Development Bank.

Let us consider that Y is a variable on poverty then which one of the following models is used to measure the poverty rate?

• A) Yt = B1 + B2t + ut
• B) ln Yt = B1 + B2t + ut
• C) All of the given options.
• D) Yt = B1 + B2lnt + ut

Which of the following is the alternate hypothesis Housman test?

• A) OLS model is appropriate.
• B) None of the given options.
• C) Random effect model is appropriate.
• D) Fixed effect model is appropriate.

Y = B1 + B2X + B3X2 is quadratic function in which Marginal cost is a function of Output and it has u-shaped curve. Which of the following is true about this function?

• A) B2 > 0 and B3 < 0
• B) B2 < 0 and B3 > 0
• C) B2 < 0 and B3 < 0
• D) B2 > 0 and B3 > 0

The aim of R-square and Adjusted R-square criterion for model selection is:

• A) Maximizing the TSS(Total sum of squares)
• B) Maximizing the RSS(Residual sum of squares)
• C) Minimizing the RSS(Residual sum of squares)
• D) Minimizing the TSS(Total sum of squares)

lnY1 = B1+ B2X1 is the log-linear regression model. What will be the value of slope coefficient in this model?

• A) B2(1/X)
• B) B2
• C) B2(Y)
• D) B2(Y/X)

Which one of the following is a specification error?

• A) Inclusion of an unnecessary variable.
• B) Adopting the wrong functional form.
• C) Errors of measurement.
• D) All of the given options.

In direct optimization we differentiate the error sum of squares with respect to each:

• A) All of the given options.
• B) Unknown slope and intercept coefficient.
• C) Unknown parameter.
• D) Unknown coefficient.

The slope coefficient is the representative of elasticity in which of the following models?

• A) Log-linear models.
• B) Semi log models.
• C) Reciprocal models.
• D) Linear models.