Specification Analysis Estimation Assumptions Multiple Choice Questions (MCQ) PDF Download

MCQ 1: In the 'specification analysis', the assumptions related to residuals states must be

1. worst
2. independent
3. dependent
4. good

MCQ 2: In assumptions of specific analysis, the normality of residuals is satisfied with the use of

1. real price data
2. real cost data
3. multiplier data
4. divisional data

MCQ 3: In assumptions testing, the violation of the constant variance is called

1. heteroscedasticity
2. heterogeneous
3. homogenous
4. homoscedasticity

MCQ 4: An assumption of specification analysis, which states all the values of residuals which are uniformly scattered around regression line is classified as

1. abnormality of residuals
2. normality of regression
3. normality of residuals
4. abnormality of regression

MCQ 5: The slope coefficient is 0.75 and the difference in machine hours is $65000, then difference in cost would be

1. $86,667
2. $48,750
3. $85,000
4. $55,000