DATA ANALYSIS/ ANALYTICS SAMPLE FINAL EXAM QUESTIONS WITH CORRECT ANSWERS 2020

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SAMPLE FINAL EXAM QUESTIONS 2020 Theory - 10 questions (Final Exam will have 20 question) Q1. We have developed a regression model: Rent = b0+ b1* House_WithPool where House_WithPool is a dummy var... iable set to 1 if a house has a Pool and is set to 0 otherwise. The Regression summary output is Estimate S.E. t Value Pr>|t| Intercept 1542.149 2.954 12.58*** <.001 House_WithPool 253.666 3.123 11.42*** <.001 What is the average rent of a house with Pool given the summary output? a. 1542.149 b. 1795.815 c. 1288.483 d. 253.666 Answer: B Q2. Why do we use Log-Transformations when we perform transformation of variables? A. To achieve a more linear relationship B. To make a distribution more normal C. To make the variance more constant D. All the above Solution: D) A, B and C are the objectives of performing Log Transformations Q3. What is the relation between Correlation and Covariance Q4. Which of the following statement is correct regarding the “size effect”? A) Size effect means smaller firms have higher returns than larger firms on average B) Stocks with high market capitalization generate returns greater than stocks with low market capitalization C) Stocks with low book to market ratio tend to outperform high book to market ratio stocks D) Firms that invest more will have a higher stock price Solution A: (Week 8 Lesson 1) Q5. Which of the following is not Fama-French factor? A. Value B. Size C. Momentum D. Market Answer: C) Fama-French factors include market, size, value factors and others. [Show More]

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