Python Statsmodels Interview & Practice Exams

Master Statistical Modeling with Python Statsmodels Practice Tests

Python Statsmodels is the premier library for rigorous statistical analysis, and this comprehensive practice course is designed to bridge the gap between basic coding and professional-grade econometrics. Whether you are preparing for a data science interview or a technical certification, these practice exams provide an immersive environment to master everything from Ordinary Least Squares (OLS) and Generalized Linear Models (GLM) to complex Time Series Analysis using ARIMA and SARIMAX. You will gain hands-on experience interpreting summary outputs, conducting diagnostic tests for heteroscedasticity and multicollinearity, and implementing robust forecasting techniques. By focusing on real-world business applications—such as logistic regression for classification and Poisson models for count data—this course ensures you can confidently explain the "why" behind every p-value and coefficient.

Exam Domains & Sample Topics

Statistical Foundations: OLS, WLS, R-style formulas, and interpreting R2 and F-statistics.
Time Series (TSA): Stationarity (ADF/KPSS), SARIMAX, Exponential Smoothing, and ACF/PACF plots.
Generalized Linear Models: Logistic, Probit, and Poisson regression with custom link functions.
Diagnostic Testing: Durbin-Watson, Breusch-Pagan, VIF scores, and robust covariance (HAC).
Production Integration: Performance tuning with NumPy/Pandas and model reproducibility.

Sample Practice Questions

1. When interpreting the results of an OLS model in Statsmodels, you notice a Durbin-Watson statistic of 0.85. What does this value primarily indicate regarding the model residuals? A. There is strong evidence of multicollinearity among predictors. B. The residuals are normally distributed. C. There is evidence of positive autocorrelation in the residuals. D. The model suffers from significant heteroscedasticity. E. The R-squared value is artificially inflated. F. There is evidence of negative autocorrelation in the residuals.

Correct Answer: C Overall Explanation: The Durbin-Watson (DW) statistic tests for autocorrelation in residuals. The value ranges from 0 to 4; a value near 2 suggests no autocorrelation, while values significantly below 2 indicate positive autocorrelation.

A. Incorrect: Multicollinearity is measured by Variance Inflation Factor (VIF), not DW.
B. Incorrect: Normality is tested via Jarque-Bera or Omnibus tests.
C. Correct: A value of 0.85 is substantially below 2, indicating positive serial correlation.
D. Incorrect: Heteroscedasticity is tested via Breusch-Pagan or White tests.
E. Incorrect: While DW affects coefficient reliability, it doesn't "inflate" R2 directly by definition.
F. Incorrect: Negative autocorrelation is indicated by values significantly above 2 (approaching 4).

2. You are using the statsmodels.tsa.stattools.adfuller test on a price series. The resulting p-value is 0.45. What should be your next step in the ARIMA modeling process? A. Proceed with the ARIMA model as the series is already stationary. B. Apply seasonal decomposition immediately. C. Difference the series (d=1) and re-run the test to achieve stationarity. D. Increase the lag order in the test until the p-value drops below 0.05. E. Switch to a Probit model to handle the non-linear trend. F. Log-transform the data only, as differencing is unnecessary.

Correct Answer: C Overall Explanation: The Augmented Dickey-Fuller (ADF) test null hypothesis is that a unit root exists (non-stationary). A p-value of 0.45 fails to reject the null, meaning the data is non-stationary and requires differencing.

A. Incorrect: A high p-value means the series is non-stationary.
B. Incorrect: While decomposition is useful, addressing the unit root via differencing is standard for ARIMA.
C. Correct: Differencing is the standard method to remove trends and achieve stationarity.
D. Incorrect: Arbitrarily changing lags to "force" a p-value is statistically unsound.
E. Incorrect: Probit models are for discrete choice/binary outcomes, not time-series stationarity.
F. Incorrect: Log-transformation stabilizes variance but often doesn't remove a stochastic trend (unit root).

3. In a Poisson Regression model for count data, you find that the variance of your dependent variable is significantly higher than its mean. Which model should you consider as a superior alternative? A. Ordinary Least Squares (OLS). B. Log-Linear Model. C. Negative Binomial Regression (GLM). D. Probit Regression. E. Weighted Least Squares with a Gaussian link. F. Simple Moving Average.

Correct Answer: C Overall Explanation: Poisson models assume equidispersion (Mean = Variance). When the variance exceeds the mean (overdispersion), the Negative Binomial model is preferred as it includes an extra parameter to model the variance.

A. Incorrect: OLS is inappropriate for discrete, non-negative count data.
B. Incorrect: While related, a standard Log-Linear model doesn't inherently fix the overdispersion of counts.
C. Correct: Negative Binomial is the standard "fix" for overdispersed Poisson data.
D. Incorrect: Probit is for binary (0/1) outcomes, not counts (0, 1, 2...).
E. Incorrect: WLS doesn't address the specific distributional requirements of overdispersed counts.
F. Incorrect: Moving Average is a smoothing/forecasting technique, not a regression distribution.

Welcome to the best practice exams to help you prepare for your Python Statsmodels.
- You can retake the exams as many times as you want
- This is a huge original question bank
- You get support from instructors if you have questions
- Each question has a detailed explanation
- Mobile-compatible with the Udemy app
- 30-day money-back guarantee if you're not satisfied

We hope that by now you're convinced! And there are a lot more questions inside the course. Enroll today and take the final step toward getting certified!