I should be deprived the rights for posting here any more. Is there a way to make special request to Chad?
I suggest a 12 hour moratorium. Go sleep you silly yank get.
Feel MUCH better. Got 5/6 
I was seriously freaking out!!!
This is what we call Dinesh’s shock-and-awe effect.
Sorry token for chrismaths, mcpass, sv102307. The question is as virgin as it could possibly be, right from Mother QBank’s fallopian … An analyst is estimating whether a fund’s excess return for a month is dependent on interest rates and whether the S&P 500 has increased or decreased during the month. The analyst collects 90 monthly return premia (the return on the fund minus the return on the S&P 500 benchmark), 90 monthly interest rates, and 90 monthly S&P 500 index returns from July 1999 to December 2006. After estimating the regression equation, the analyst finds that the correlation between the regressions residuals from one period and the residuals from the previous period is 0.199. Which of the following is most accurate at a 0.05 level of significance, based solely on the information provided? The analyst: A) can conclude that the regression exhibits multicollinearity, but cannot conclude that the regression exhibits serial correlation. B) can conclude that the regression exhibits both serial correlation and multicollinearity. C) can conclude that the regression exhibits serial correlation, but cannot conclude that the regression exhibits multicollinearity. D) cannot conclude that the regression exhibits either serial correlation or multicollinearity
R2 * N = 3,56 which is quite low (don’t have the table here) so I would say no serial correlation. There is no high R2 so no MC either… D?
Surely we won’t get a question like Dinesh’s PM one on the exam? 5 out of 6 questions don’t refer to the vignette…
This is a D-W question. Test stat is 2(1-r) = 1.602 Critical value = 1.61 So serial correlation present. No info about multicollinearity, so C)
Shit… Serial correlation is DW. You’re right.
C is the correct answer The Durbin-Watson statistic tests for serial correlation. For large samples, the Durbin-Watson statistic is approximately equal to two multiplied by the difference between one and the sample correlation between the regressions residuals from one period and the residuals from the previous period, which is 2 × (1 − 0.199) = 1.602, which is less than the lower Durbin-Watson value (with 2 variables and 90 observations) of 1.61. That means the hypothesis of no serial correlation is rejected. There is no information on whether the regression exhibits multicollinearity
Just for me, now what does the BP do?
you folks up all night?? I just woke up…time to get to work
jalmy8 - yep just going to bed… a couple more hrs.
dinesh.sundrani Wrote: ------------------------------------------------------- > jalmy8 - yep just going to bed… a couple more > hrs. haha, your the man dinesh…Keep at it!
Breusch Druid is about Conditional Heterosexuality. Test stat is n*R^2, and it is a 1 tailed chi^2 test. If test stat > critical value, you are conditionally heterosexual.
My sex score is 0 until June 7th because she has left the building ‘so I’m not distracted’. Now I’m alone with the Schweser girl for two weeks. Don’t like her flatness.
Re: There’s nothing like the smell of Quant in the morning Posted by: dinesh.sundrani (IP Logged) [hide posts from this user] Date: May 24, 2008 03:06AM A1. D? 8.14254 - 12.75746 Dinesh, how do get the answer for question #1? I thought the confidence interval was suppose to be predicted b +/- t(critical) x s(b)… 10.45 +/- (10.45/1.13) (2.042)… so 10.45 +/- 18.88 = -8.43 to 29.33… so I get A… ??
Sorry dinesh I just saw that you replied to cfasf1 regarding this same question … but isn’t 1.13 the t-value and you are suppose to use s?
.
was wondering the same nattyg… i got A too for the first one because i use the b +/- [S(b) \* T(critical)]