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MBA Business Statistics MCQs – Practice Test 8 (Chapter 9)

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Linear Regression Model MCQs – Practice Test 8 PDF Download

MCQ 36: The variance of error term in the ordinary least square method is assumed to be:

  1. Not constant
  2. Constant
  3. 0
  4. 1

MCQ 37: Regression predictions based on heteroscedasticity disturbance remains:

  1. Consistent
  2. Unbiased
  3. Both A and B
  4. Non-linear

MCQ 38: Incase of homoscedastic disturbance, the prediction of Y for a given value of X based on the estimates from original data would have:

  1. Low multicollinearity
  2. Perfect multicollinearity
  3. High variance
  4. Low variance

MCQ 39: If the assumption of homoscedastic disturbance is not fulfilled, the variance of coefficient is:

  1. Applied
  2. Not applied
  3. Constant
  4. Not fixed

MCQ 40: Heteroscedasticity arises from violating the assumption of:

  1. Linear regression model
  2. Classical linear regression model
  3. Best linear regression model
  4. Unbiased linear regression model

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