Chapter 1

Which of the following situations most likely resulted in Nick and Rosa's weight increase between two periods

- closing gyms - hurricane destroys all produce - videogame competition and required to practice 7 hours a day

Which of the following is true regarding cross-sectional data sets?

1. The data are collected at approximately the same point in time. 2.The data consist of a sample of multiple individuals. 3.It can be assumed that the data were obtained through a random sampling of the underlying population.

In an empirical economic analysis, how does the econometric model relate to the economic model? IDK about this one

1. The econometric model imposes a functional form on the more generally specified economic model. 2. The econometric model is identical to the economic model.

Suppose you have two individual cross-sectional data sets on car prices for the years 2002 and 2004 covering the time periods both before and after the U.S. invasion of Iraq in 2003. You have 130 observations in your 2002 data set and 90 observations in your 2004 data set. You have decided to append your two individual cross-sectional data sets together to form one pooled cross-sectional data set. After appending the two data sets, you now have____?____ total observations in your new pooled cross-sectional data set

130+90=220

Which of the following are examples of a time-series data set? A. Quarterly U.S. GDP from 2000 to 2009 B. The daily exchange rate of the U.S. dollar to the British pound since 2007 C. The 2010 European Union (EU) Household Budget Survey, which surveyed households in the EU regarding their spending habits D.Monthly speeding tickets in Los Angeles over the past 5 years

A B D

panel data

A panel data set consists of a time series for each cross-sectional member in the data set. For example, data consisting of daily stock prices for Apple, Microsoft, Sony, and Hewlett-Packard over a 3-year period would be a panel data set. A data set with only Apple stock prices would be a time series.

Which of the following is true regarding panel (longitudinal) data sets? A. They are easier to obtain than other types of data because they use the same cross-sectional members over a small time period. B. Panel data sets are easier to clean and manipulate because they typically have fewer observations than other types of data. C.Having several observations on the same cross-sectional members enables a researcher to control for unobserved characteristics. D.These are more difficult to obtain than other types of data because they require following the same cross-sectional members over a period of time.

C D

What are the primary advantages of pooled cross-sectional data over ordinary cross-sectional data? A. Pooling cross sections enables you to ignore the differences in data over time, since you are left with just one cross-sectional data set. B. Pooling cross sections enables you to form a panel data set. C. Pooling cross sections enables you to observe changes in key relationships over time. D. Pooling cross sections provides a larger sample size.

C. Pooling cross sections enables you to observe changes in key relationships over time. D. Pooling cross sections provides a larger sample size.

What means other (relevant) factors being equal?

CETERIS PARIBUS

Suppose you are studying the factors that influence long-term stock returns by analyzing a data set of Google stock prices over the last 10 years. You are using only the data collected on Google stocks. True or False: The method you are using to gather your cross-sectional data is an example of random sampling from the entire population of stocks.

False

True or False: In order to plot the data in this data set and perform any subsequent econometric analysis, it is essential to match each individual in the data set with the correct observation number

False

is this valid and complete econometric model wage=f(educ,exper,train,USname)

False

indicate the correctly ordered steps in conducting an empirical economic analysis to test an economic theory.

Steps 1.Formulate the question of interest 2.Construct a formal or informal economic model 3.Specify an econometric model 4.State hypothesis in terms of model parameters 5.Collect data 6.Estimate model parameters using econometric methods

True or False: You can still perform econometric analysis on this data set even though the variables calories and sleep are reported over the past 6 months, while the rest of the data is from a single day

True

If other (relevant) factors are not held constant, you ______?______ determine whether one variable has a causal effect on another.

cannot

Cross-sectional data

consists of a sample of individuals, households, firms, cities, states, countries, or any other units, taken at a given point in time.

What kind of data is this: In this case, data from a sample of five individuals have been collected on a single date, 1/1/2015, .

cross-sectional data set. If these individuals had all been surveyed on different days in January 2015, the set would still be considered a cross-sectional data set, as economists often ignore minor differences in timing

A ________?_____________data set consists of a time series for each cross-sectional member in the data set and requires replication of the same units over time.

panel

What data is this Suppose you want to study factors that influence the body weight of the people in your city. You begin by surveying two randomly selected individuals, Nick and Rosa, on 1/1/2015. You follow up by surveying them two more times, on 7/1/2015 and 12/31/2015. The data you collect are displayed in the following table. (Note: You can drag and position the table throughout the problem by clicking the blue push pin icon, and then dragging the table to the desired location.)

panel data

is this valid and complete econometric model wage=β1educ+β2exper+β3train+β4USname+u

true