Econometrics

Final Exam questions:

Full Name_______Altynai Kubatova_____________ Group __Fin-18_______

1. What is the difference between t-test and Z-test?
Z-test is used for more than 100 sample size. T-test is used for unknown population
variance.
2. If you would need to choose some variables for t-test or Z-test from the attached Excel
file, which variables you would pick to use as dependent and independent variables?
Dependent variable: GDP
Independent variable: Region, Freedom Index Categorical*100

3. What is the difference between ANOVA and MANOVA?

ANOVA- analysis of variance, which includes only one dependent variable. MANOVA-
multivariate analysis of variance, which includes multiple (more than one) dependent
variables. But both of them have one-way and two-way flovar.

4. If you would need to choose some variables for ANOVA form the attached Excel file,
which ones you would pick to use as dependent and independent variables?
Dependent variable: FDI
Independent variables: Ease of doing business by World Bank, Voice and Accountability,
Political Stability and Absence of Violence*100, Government Effectiveness*100 and
other that can affected on FDI

5. If you would need to choose some variables for MANOVA from the attached Excel file,
which ones you would pick to use as dependent and independent variables?
Dependent variables: Unemployment, Labor force, Life expectancy at birth (years)

Independent variables: Gender Inequality Index Categorical, Human development index

(HDI), Freedom Index Categorical*100, Mean years of schooling (years)

6. What would be your Alternative hypothesis using the variables that you picked for
MANOVA?
Ho: at least one of the means is not different or equal (m1=m2=m3=m4)
Ha: at least one of the means is different or not equal

7. What is the main difference between the linear regression model and logistic regression
models?
Assumptions in linear regression is not required for logistic regression.
 Linear regression is normality, homoscedasticity, multicollinearity, best linear unbiased
estimator.
Logistic regression is no multicollinearity, dependent variable is limited (0,1-probability),
observation is independent variable to each other, no linearity and so on, dependent
variable is categorical, required for large sample sizes.
8. If you would need to choose some variables for the linear regression model from the
attached Excel file, which ones you would pick to use as dependent and independent
variables?

Dependent variable: Inflation

Independent variables: Unemployment, total (% of total labor force), Foreign direct
investment, net inflows (BoP, current US$), Government Effectiveness*100, Political
Stability and Absence of Violence*100

9. What would be your Alternative hypothesis using the variables that you picked for the
model?
Ho: at least one Bi equal to zero (Bi=0)
Ha: at least one Bi is not equal to zero.

10. If you would need to choose some variables for the logistic regression model from the
attached Excel file, which variables you would pick for the binary logistic regression
models to use as dependent and independent variables?
Dependent variable: Gender Inequality Index Categorical

Independent variables: Gender Inequality Index Numerical, Freedom Index Numerical, Human
development index (HDI)