Question

Question One

State if the following are true or false and explain.

1. A nominal scale and ordinal scale both have difference properties.       [2 marks]                                                                                                                               
2. The Classical linear regression model assumptions assume a model must linear in parameters and never in variables.                                                      [2 marks]                                                                                                                               
3. Time series data is similar to panel data as both have varying observations or characteristics.                                                                                        [2 marks]                                                                                                                                
4. A moving average process and an autoregressive process have the same specification.                                                                                          [2 marks]                                                                                                                                
5. The confidence interval approach can only test two tails tests and not one tailed tests.                                                                                                        [2 marks]

Answer 1

1) True

The nominal and ordinal scales have different properties.

Nominal variables are used to “name,” or label a series of values. Ordinal scales provide good information about the order of choices, such as in a customer satisfaction survey.

2) False

One assumption is that the regression model is linear in the parameter; it may or may not be linear in the variables. The question states that the variable is not linear and thus it’s false.

Please post the other questions separately. Thanks and good luck:)