6 questions
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.
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.
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
Can R-squared adjusted be interpreted as percentage?
No, never
Yes, always
Yes, if sample size is more than 1000
Yes, if there is just one variable on rhs
What is R squared?
Unexplained variation over explained variation.
Unexplained variation over total variation.
Explained variation over unexplained variation.
Explained variation over total variation.
Choose the correct statement:
R-squared should be used to compare the models.
R squared can be interpreted as the percentage of variation of y that is explained by the model.
R squared can decrease if correlation between y and additional x is zero.
The lower the R-squared, the better the model is.