Question

multiple choice

1. Average weekly claims for unemployment insurance, money supply and the index of stock prices are all examples of


A) coincident indicators.


B) leading indicators.

C) lagging indicators.

D) None of the above

2. The use of a dummy variable in regression analysis indicates


A) that insufficient data is available for the analysis.


B) that a researcher does not really know what to include in the equation.


C) the use of hypothetical data.


D) that a categorical variable is expected to have an impact on a dependent variable.

3. Which of the following refers to a relatively high correlation among the independent variables of a regression equation?


A) statistically insignificant regression coefficients


B) autocorrelation

C) Multicollinearity


D) the identification problem

Answer 1

1. B. Leading indicators as these signal events to be happened.

2. D. That a categorical variable is expected to have an impact on a dependent variable.They define the qualitative independent variable with either 0 or 1.

3. C. Multicollinearity. The significance of regression analysis is to isolate the linkage between each dependent and independent variables.