List of top Statistics, Econometrics & Mathematical Economics Questions on Urban geography and econometrics

An analyst regressed $Y$ on $X_1$ and $X_2$. If she later noticed that $X_1=5X_2$, then which assumption of the classical linear regression model was violated?

Using the Ordinary Least Squares (OLS) method, a researcher estimated the relationship between initial salary ($S$) of MBA graduates and their cumulative grade point average (CGPA) as $\hat S_i=\hat\beta_0+\hat\beta_1\,CGPA_i,\ i=1,2,\ldots,100$, where $\hat\beta_0=4543$ and $\hat\beta_1=645.08$. The standard errors of $\hat\beta_0$ and $\hat\beta_1$ are $921.79$ and $70.01$, respectively. The $t$-statistic for testing the null hypothesis $\beta_1=0$ is _____{(round off to two decimal places)

Consider the following simultaneous equations model: \[ Y_t=\beta_1+\beta_2 X_t+\beta_3 X_{t-1}+\beta_4 Z_t+\mu_{1t} (1),\qquad Z_t=\delta_1+\delta_2 Y_t+\delta_3 W_t+\mu_{2t} (2) \] Before estimating, identification tests (order and rank) show that equation (2) is {overidentified. Which method is appropriate to estimate equation (2)?}

In the flexible exchange rate environment with perfect capital mobility, a fiscal stimulus will be linked to which of the following statements?

Let \( f(x) \) be the probability distribution function of a random variable \( X \), where \[ f(x) = \frac{5x^4}{64} \quad \text{if} \quad -2<x<2 \] \[ = 0 \quad \text{otherwise} \] Let \( | \cdot | \) denote the modulus function. Then, \( P(|X|<1) \) and \( P(X^2<3) \) are given by (respectively):

The change in equilibrium output for an equal amount of change in government expenditure and tax revenue is linked to which one of the following multipliers?