SXUK UG S5 Applied Econometrics

Topic:‐ BNHRDS542T_MCQ_SXUKDEC21

1)

[Question ID = 10528][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q1]

1. Only (i) is true [Option ID = 30108]
2. Only (ii) is true [Option ID = 30109]
3. Either (ii) or (iii) or both are true [Option ID = 30110]
4. Neither (ii) nor (iii) is true [Option ID = 30111]

Correct Answer :‐
Only (i) is true [Option ID = 30108]

2)

[Question ID = 10529][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q2]

1.

[Option ID = 30112]

2.

[Option ID = 30113]

3.

[Option ID = 30114]

4.

[Option ID = 30115]

Correct Answer :‐

[Option ID = 30112]

3)
[Question ID = 10530][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q3]
1. .0402 [Option ID = 30116]
2. .0026 [Option ID = 30117]
3. 15.46 [Option ID = 30118]
4. 19.23 [Option ID = 30119]

Correct Answer :‐
.0402 [Option ID = 30116]

4) Which of the following conditions are necessary for a series to be classified as weekly stationary process:‐

i. It must have a constant mean.

ii. It must have a constant variance
iii. It must have a constant autocovariances for given lags.
iv. It must have a constant probability distribution[Question ID = 10531][Question Description =
BNHRDS542T_MCQ_SXUKDEC21_Q4]
1. (i) & (iv) are True only [Option ID = 30120]
2. (i) & (iii) are True only [Option ID = 30121]
3. (i), (ii) & (iii) are True only [Option ID = 30122]
4. (ii) & (iv) are True only [Option ID = 30123]

Correct Answer :‐
(i) & (iv) are True only [Option ID = 30120]

5)

[Question ID = 10532][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q5]

1. OLS cannot be applied as the equation is cubic in x [Option ID = 30124]
2. OLS cannot be applied as the equation contains eX term [Option ID = 30125]
3. OLS cannot be applied as the equation is cubic in x and contains eX term [Option ID = 30126]
4. OLS can be applied despite the equation is cubic in x and contains eX term [Option ID = 30127]

Correct Answer :‐
OLS cannot be applied as the equation is cubic in x [Option ID = 30124]

6)

[Question ID = 10533][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q6]

1.

[Option ID = 30128]

2.

[Option ID = 30129]

3.
 [Option ID = 30130]

4.

[Option ID = 30131]

Correct Answer :‐

[Option ID = 30128]

7)

[Question ID = 10534][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q7]

1.

[Option ID = 30132]

2.

[Option ID = 30133]

3.

[Option ID = 30134]

4.

[Option ID = 30135]

Correct Answer :‐

[Option ID = 30132]

8)

[Question ID = 10535][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q8]

1. 5.7694 [Option ID = 30136]
2. 2.5318 [Option ID = 30137]
3. 6.4104 [Option ID = 30138]
4. 6.0730 [Option ID = 30139]

Correct Answer :‐
5.7694 [Option ID = 30136]
9) Which of the following is an example of Random Walk model?[Question ID = 10536][Question Description =
BNHRDS542T_MCQ_SXUKDEC21_Q9]
1.

[Option ID = 30140]
2.

[Option ID = 30141]
3. Both of these [Option ID = 30142]
4. None of these [Option ID = 30143]

Correct Answer :‐

[Option ID = 30140]

10)

[Question ID = 10537][Question Description = BNHRDS542T_MCQ_SXUKDEC21_Q10]

1.

[Option ID = 30144]

2.

[Option ID = 30145]
3.

[Option ID = 30146]
4. None of these [Option ID = 30147]

Correct Answer :‐

[Option ID = 30144]

Topic:‐ BNHRDS542T_SUBJA_SXUKDEC21

1) “Because multicollinearity lowers t‐statistic, all the insignificant regression coefficients should be dropped from the
model because they are redundant.” – check whether the given statement is justified and explain your reasons. [Question
ID = 10538][Question Description = BNHRDS542T_SUBJA_SXUKDEC21_Q01]

2) Let C be total consumption expenditure of a family, Y is its income and N is the size of the family. Formulates an
econometric model that incorporates the following assumption:
The marginal propensity to consume decreases as income increases.
Describe how you would test the hypothesis implicit in the above statement.

[Question ID = 10539][Question Description = BNHRDS542T_SUBJA_SXUKDEC21_Q02]

3)

[Question ID = 10540][Question Description = BNHRDS542T_SUBJA_SXUKDEC21_Q03]

4)
[Question ID = 10541][Question Description = BNHRDS542T_SUBJA_SXUKDEC21_Q04]

5) How to choose between additive and multiplicative decomposition of a time series?[Question ID = 10542][Question
Description = BNHRDS542T_SUBJA_SXUKDEC21_Q05]

6) Discuss the limitations of Linear Probability model (LPM). [Question ID = 10543][Question Description =
BNHRDS542T_SUBJA_SXUKDEC21_Q06]

7) Explain the consequence of having measurement errors in the dependent variable of a regression.[Question ID = 10544]
[Question Description = BNHRDS542T_SUBJA_SXUKDEC21_Q07]

8) What is meant by Balanced and Unbalanced panel? Discuss with an example. [Question ID = 10545][Question Description
= BNHRDS542T_SUBJA_SXUKDEC21_Q08]

9)

[Question ID = 10546][Question Description = BNHRDS542T_SUBJA_SXUKDEC21_Q09]