The Student Room Group
Reply 1
cute2be
1.) If the income elasticity of a particular product is -0.2, it would be considered
a.) a superior good
b.) a normal good
c.)an inferior good
d.) an elastic good

c

cute2be
2. If a regression coefficient passes the t-test, it means that
a.)the regression equation is valid
b.)the regression coefficient is significantly different from zero
c.) the regression coefficient can be used for forecasting
d.) the regression coefficient should be included in the regression equation

b. It's also part of c and d, but for those to be used, you'd need to check for multicolliniarity, autocorrelation and the distribution of errors.

cute2be
3. Which of the following refers to a relatively high correlation among the independent variables of a regression equation?
A.)autocorrelation
b.)the identity problem
c.)statstically insignificant regression coefficients
d.)multicollinearity

d

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