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  • 1. Multiple Choice
    30 seconds
    5 pts

    Choose the correct statements

    Total sum of squares is the sum of squared deviations from the mean of y.

    Sum of squared residuals is equal to total sum of squares when the variables are demeaned.

    Sum of squared residuals always equals to zero .

    All of the above.

  • 2. Multiple Choice
    30 seconds
    5 pts

    If the data is demeaned, then ...

    The estimator is biased, we cannot use it.

    The regression line will go through the origin.

    We need first to re-scale it in order to run regression without a constant.

    We do not need to include constant only if there is more than 1 variable in the model.

  • 3. Multiple Choice
    30 seconds
    5 pts

    How can you predict residuals in Stata?

    reg y x, predict residuals

    First regression command, then: "predict residuals, varname"

    First regression command, then: "predict varname, res"

    predict y x, residuals

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