Q1. Which of the following statements is least likely an example of a qualitative dependent variable? The: A) number of shares acquired through the exercise of executive stock options, explained by executive-specific and company-specific variables. B) probability of bankruptcy is explained by several company-specific financial ratios. C) likelihood that a company will divest itself of a subsidiary, explained by subsidiary and competition variables.
Q2. Which of the following is NOT a model that has a qualitative dependent variable? A) Logit. B) Discriminant analysis. C) Event study.
Q3. A high-yield bond analyst is trying to develop an equation using financial ratios to estimate the probability of a company defaulting on its bonds. Since the analyst is using data over different economic time periods, there is concern about whether the variance is constant over time. A technique that can be used to develop this equation is:
A) multiple linear regression adjusting for heteroskedasticity. B) dummy variable regression. C) logit modeling.
Q4. What is the main difference between probit models and typical dummy variable models?
A) A dummy variable represents a qualitative independent variable, while a probit model is used for estimating the probability of a qualitative dependent variable. B) There is no difference--a probit model is simply a special case of a dummy variable regression. C) Dummy variable regressions attempt to create an equation to classify items into one of two categories, while probit models estimate a probability.
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发表于 2009-1-8 14:48
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