Statistical Concepts
What is the range of a probability value?
0 to 1
What is a binary choice model?
A model used to predict outcomes with two possible values, such as logit or probit models
What does an R-squared value indicate in a regression model?
The proportion of variation in the dependent variable explained by the independent variables
What is the dependent variable in a regression model?
The variable being predicted or explained
What is Morocco’s largest export commodity?
Phosphates
What does "standard deviation" measure in a dataset?
The spread or variability of data points around the mean
What is the difference between fixed effects and random effects models?
Fixed effects control for unobserved variables that vary across individuals but not over time, while random effects assume no correlation between the unobserved variables and the predictors
What does a correlation coefficient of 0 imply?
No linear relationship between variables
What is the "null hypothesis"?
A statement suggesting there is no effect or no difference, used as a starting point for hypothesis testing
What is the primary sector of Morocco’s economy, employing the largest share of its workforce?
Agriculture
What does a p-value measure in hypothesis testing?
The probability of observing the results given the null hypothesis is true
What is a heteroscedasticity problem in regression?
When the variance of the errors is not constant across observations
If a regression coefficient is negative, what does it mean?
The dependent variable decreases as the independent variable increases
What does "p-value" indicate in hypothesis testing?
The probability of observing the test statistic under the null hypothesis; it helps determine the statistical significance
Which international organization does Morocco collaborate with for economic development and reform?
The World Bank
What type of distribution is symmetric and bell-shaped?
Normal distribution
What is the role of interaction terms in a regression model?
To explore how the relationship between two variables changes depending on the value of a third variable
How do you interpret a coefficient of determination (R-squared) close to 1?
The model explains most of the variation in the dependent variable
What is "multicollinearity"?
A situation in which two or more independent variables in a regression model are highly correlated
What is the name of the economic zone in Tangier designed to attract foreign investment?
Tangier Free Zone
What is multicollinearity, and why is it problematic?
When two or more independent variables are highly correlated, making it difficult to determine individual effects
What is the purpose of using an instrumental variable in regression?
To address endogeneity problems
What does it mean if a confidence interval for a coefficient includes zero?
The coefficient is not statistically significant
What is the difference between "exogenous" and "endogenous" variables?
Exogenous variables are not affected by other variables in the model; endogenous variables are influenced by other variables
What is the name of Morocco’s flagship solar energy project?
Noor Solar Power Plant