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Questions › GATE › GATE 2026 › Q64
2 marksEconometrics › Dummy variables and functional forms › Log, quadratic and other functional formsEasyabout 1 min

GATE 2026 Question 64: Dummy variables and functional forms

Consider the estimated regression Equation below, where, y^t\hat y_ty^​t​ is the estimated value of the log (to the base eee) of real GDP at time ttt. The numbers in the parentheses are the value of the ttt-statistic of the corresponding coefficients.

y^t=6.20(10.25)+0.05(4.62) t\hat y_t = \underset{(10.25)}{6.20} + \underset{(4.62)}{0.05}\,ty^​t​=(10.25)6.20​+(4.62)0.05​t

The growth rate of real GDP (in %) is ______ (rounded off to the nearest integer)

Answer and worked solution

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Plain-text version

Consider the estimated regression Equation below, where, ŷₜ is the estimated value of the log (to the base e) of real GDP at time t. The numbers in the parentheses are the value of the t -statistic of the corresponding coefficients. ŷₜ = 6.20 + 0.05 t The growth rate of real GDP (in %) is (rounded off to the nearest integer)

Also written as: Consider the estimated regression Equation below, where, y_hat_t is the estimated value of the log (to the base e) of real GDP at time t. The numbers in the parentheses are the value of the t -statistic of the corresponding coefficients. y_hat_t = 6.20 + 0.05 t The growth rate of real GDP (in %) is (rounded off to the nearest integer)

Dummy variables and functional forms has come up 20 times in 6 exams since 2011.

What this question tests

This question is on Log, quadratic and other functional forms, part of Dummy variables and functional forms in Econometrics.

Choosing and interpreting log-log, semi-log, quadratic and reciprocal specifications.

TestStop has 8 past-paper questions on this subtopic.

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