The measurement error is the difference between the actual value of a variable and its reported value.
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A change in the unit of measurement of the dependent variable in a model does not lead to a change in:
A. the standard error of the regression.
B. the sum of squared residuals of the regression.
C. the goodness-of-fit of the regression.
D. the confidence intervals of the regression.
Changing the unit of measurement of any independent variable, where log of the dependent variable appears in the regression:
A. affects only the intercept coefficient.
B. affects only the slope coefficient.
C. affects both the slope and intercept coefficients.
D. affects neither the slope nor the intercept coefficient.
If a regression equation has only one explanatory variable, say x1, its standardized coefficient must lie in the range:
A. -2 to 0.
B. -1 to 1.
C. 0 to 1.
D. 0 to 2.
Which of the following statements is true when the dependent variable, y > 0?
A. Taking log of a variable often expands its range.
B. Models using log(y) as the dependent variable will satisfy CLM assumptions more closely than models using the level of y.
C. Taking log of variables make OLS estimates more sensitive to extreme values.
D. Taking logarithmic form of variables make the slope coefficients more responsive to rescaling.
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