1. a. 0 b. 0.09 c. 0.1 d.0.3 2. a. 0.33 b. 0.50 c. 0.60 d. 0.75 3. a. 5% b. 15% c. 35% d. 45% Question 4 Suppose that a large company knows the following statistics about its employees: 20% of the employees work at the headquarters. 60% of the employees are married. Among the employees working at the headquarters, 75% are married. Among all married employees, what percentage work at the headquarters? A.12.5% B.20% C. 22.5% D.25% 5. a. Yes. b. No, because they have a bivariate distribution. c. No, because their correlation is not zero. d. No, for a different reason than those stated in the other answers. 6. Which of the following combinations is not possible? a. The correlation between X and Y is zero, and X and Y are independent. b. The correlation between X and Y is zero, and X and Y are dependent. c. The correlation between X and Y is nonzero, and X and Y are independent. d. The correlation between X and Y is nonzero, and X and Y are dependent. 7. a. A person who stays in school for one additional year can be expected to live 0.15 years longer. b. A person who stays in school for one additional year can be expected to live for a 15% longer time. c. A person with an average level of education can be expected to live 0.15 years longer than a person with the legal minimum level of education. d. A person with an average level of education can be expected to live 15% longer than a person with the legal minimum level of education. 8. a.2 b. 3 c. 8 d. not enough information 9. 10. a. b. 11. In the model c. d. , we find the estimate b2 = 0.6 with standard error 0.4, based on sample with 25 observations. Compute a 95% confidence interval for .The relevant critical value can be found in the following table df 22 23 24 25 26 27 tdf,0.025 2.074 2.069 2.064 2.060 2.056 2.052 a. (-0.228 , 1.428 ) b. ( -0.224 , 1.424 ) c. ( 0.434 , 0.766 ) d. ( 0.435 , 0.765 ) 12. Which of the following will cause the standard error of b2 to go down? a. A lower intercept. b. A smaller sample size. c. More variance in the error term. d. More variance in the regressor. 13. What is heteroskedasticity? a.All of the ei have the same variance. b.All of the ei can have different variances. c.All of the ui have the same variance. d.All of the ui can have different variances. 14. Which of these assumptions is/are necessary to prove unbiasedness of the least squares estimators? a. The first one is necessary, but the second one is not. b. The first one is not necessary, but the second one is. c. Both are necessary d. Neither are necessary 15. What does the Gauss-Markov theorem say about estimators of that have a smaller variance than the least squares estimator b2? a. They cannot exist. b. They may exist, but they must be biased or non-normally distributed. c. They may exist, but they must be biased or nonlinear. d. They may exist, but they must be non-normally distributed or nonlinear