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- 1. Multiple-choice30 seconds5 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-choice30 seconds5 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-choice30 seconds5 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

- 4. Multiple-choice30 seconds5 pts
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

- 5. Multiple-choice30 seconds5 pts
What is R squared?

Unexplained variation over explained variation.

Unexplained variation over total variation.

Explained variation over unexplained variation.

Explained variation over total variation.

- 6. Multiple-choice30 seconds5 pts
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.