The best way to interpret polynomial regressions is to

Question

Questions:

Question 1. As the degree of freedom increase indefinitely, the t distribution approaches the normal distribution. True
False

Question 2. Price elasticity is defined as the percentage change in the quantity demanded for a (small) percentage change in the price.
True
False

Question 3. Comparing the California test scores to test scores in Massachusetts is appropriate for external validity if
Massachusetts also allowed beach walking to be an appropriate P.E. activity.
the two income distributions were very similar.
the student-to-teacher ratio did not differ by more than five on average.
the institutional settings in California and Massachusetts, such as organization in classroom instruction and curriculum, were similar in the two states.

Question 4.The best way to interpret polynomial regressions is to
take a derivative of Y with respect to the relevant X.
plot the estimated regression function and to calculate the estimated effect on Y associated with a change in X for one or more values of X.
look at the t-statistics for the relevant coefficients.
analyze the standard error of estimated effect.

Question 5.For the polynomial regression model,
you need new estimation techniques since the OLS assumptions do not apply any longer.
the techniques for estimation and inference developed for multiple regression can be applied.
you can still use OLS estimation techniques, but the t-statistics do not have an asymptotic normal distribution.
the critical values from the normal distribution have to be changed to 1.962, 1.963, etc.

Question 6.Demand is said to be elastic if the absolute value of the price elasticity is greater than 0; less than 0
True
False

Question 7. An efficient estimator means an estimator with minimum variance.
True
False

Question 8. In the log-lin model the slope coefficient measures the growth rate.
True
False

Question 9.A nonlinear function
makes little sense, because variables in the real world are related linearly.
can be adequately described by a straight line between the dependent variable and one of the explanatory variables.
is a concept that only applies to the case of a single or two explanatory variables since you cannot draw a line in four dimensions.
is a function with a slope that is not constant.

Question 10. A type I error occurs when we reject the null hypothesis even though it is false.
True
False