1)What is the relationship, if any, between the normal and t-distributions? A)A
ID: 1099467 • Letter: 1
Question
1)What is the relationship, if any, between the normal and t-distributions?
A)A t-distribution with zero degrees of freedom is a normal
B)A t-distribution with one degree of freedom is a normal
C)A t-distribution with infinite degrees of freedom is a normal
D)There is no relationship between the two distributions.
2)What result is proven by the Gauss-Markov theorem?
A)That OLS gives unbiased coefficient estimates
B)That OLS gives minimum variance coefficient estimates
C)That OLS gives minimum variance coefficient estimates only among the class of linear unbiased estimators
D)That OLS ensures that the errors are distributed normally
3)Two researchers have identical models, data, coefficients and standard error estimates. They test the same hypothesis using a two-sided alternative, but researcher 1 uses a 5% size of test while researcher 2 uses a 10% test. Which one of the following statements is correct?
A)Researcher 2 will use a larger critical value from the t-tables
B)Researcher 2 will have a higher probability of type I error
C)Researcher 1 will be more likely to reject the null hypothesis
D)Both researchers will always reach the same conclusion.
4)Which of the following is NOT correct with regard to the p-value attached to a test statistic?
A)p-values can only be used for two-sided tests
B)It is the marginal significance level where we would be indifferent between rejecting and not rejecting the null hypothesis
C)It is the exact significance level for the test
D)Given the p-value, we can make inferences without referring to statistical tables
5)Which of the following is NOT a good reason for including a disturbance term in a regression equation?
A)It captures omitted determinants of the dependent variable
B)To allow for the non-zero mean of the dependent variable
C)To allow for errors in the measurement of the dependent variable
D)To allow for random influences on the dependent variable
A)A t-distribution with zero degrees of freedom is a normal
B)A t-distribution with one degree of freedom is a normal
C)A t-distribution with infinite degrees of freedom is a normal
D)There is no relationship between the two distributions.
Explanation / Answer
1 - A t-distribution with infinite degrees of freedom is a normal
2 - That OLS gives minimum variance coefficient estimates only among the class of linear unbiased estimators
3 - Researcher 2 will have a higher probability of type I error
4 - p-values can only be used for two-sided tests
5 - To allow for the non-zero mean of the dependent variable
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