PRMIA Exam 8002 Topic 3 Question 88 Discussion

Actual exam question for PRMIA's 8002 exam

Question #: 88
Topic #: 3

[All 8002 Questions]

Which of the following is not a direct cause of autocorrelation or heteroskedasticity in the residuals of a regression model?

AA structural break in the dependent variable

BA high positive correlation between two explanatory variables

CThe omission of a relevant explanatory variable

DUsing an inappropriate functional form in the model

Show Suggested Answer

Suggested Answer: B

by Melissia at Sep 12, 2024, 07:03 PM

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Chandra

7 months ago

I think C) The omission of a relevant explanatory variable can also cause issues with autocorrelation or heteroskedasticity.

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Jess

7 months ago

I agree with Erick, D) makes more sense because it can lead to misspecification of the model.

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Ligia

8 months ago

Using an inappropriate functional form? That's like trying to fit a square peg into a round hole. Rookie move.

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Rashad

8 months ago

The omission of a relevant explanatory variable is a classic cause of heteroskedasticity. Rookie mistake, really.

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Marleen

6 months ago

D) Using an inappropriate functional form in the model

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Bev

6 months ago

C) The omission of a relevant explanatory variable

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Zack

7 months ago

C) The omission of a relevant explanatory variable

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Keshia

7 months ago

B) A high positive correlation between two explanatory variables

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Terry

7 months ago

B) A high positive correlation between two explanatory variables

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Shawnna

7 months ago

A) A structural break in the dependent variable

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Tu

7 months ago

A) A structural break in the dependent variable

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Erick

8 months ago

I disagree, I believe it's D) Using an inappropriate functional form in the model.

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Phil

8 months ago

I think the answer is B) A high positive correlation between two explanatory variables.

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Chan

8 months ago

Wait, isn't autocorrelation and heteroskedasticity like the regression model's way of saying 'I don't feel so good'?

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Willodean

8 months ago

A structural break in the dependent variable? Sounds like a plot twist in a crime novel, not a regression issue!

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Jeff

8 months ago

B) A high positive correlation between two explanatory variables

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Nakisha

8 months ago

A) A structural break in the dependent variable

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Daniel

8 months ago

B) A high positive correlation between two explanatory variables

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Aileen

8 months ago

A) A structural break in the dependent variable

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