CULEEEE HCCC OSES e#evvd Sr.No. of Question Paper : 9192 Unige Paper Cade inns Nanette apr nels Henan Name ofthe Course 3 LA. (Hons) Eeonamice CBCS Part Semester wv Dartion Shows Maximum Marks 3 33 (Moaied ecording othe Now CBCS Stabus) INSTRUCTIONS FOR CANDIDATES: Alton ani ise questions, 22. Suppose that you ar considering opening 4 restaurant a oan where average trait volume is 1090 tat per day To hele tow ace whether open the teinurant or nol you catected data oe aly soc thousand of rupee tnd ‘Volume tin endreds of chs pe 4s9) fora random samp of 2 restaurants you 1 up poet pel ‘Sales (= 8, +B, AV tic 5 When EX 1717, BX} = 1055, 7 «3, Roan (9) Obtain the OLS estinator of the slope and Interpret ih ao) Ane fy = MEX -2K-2y “Ox -ax B= NR 10720250495, Aya NY 3222-706 naxa7i7— 105704 f= “areas <5 eens that if tac incensed 1% the average sales increased 06%6 rupee 1. () Estimate the Jntercept coelficent and also find out regression cavation. i o Ane Be Pie fy = 32-0096 225) 82 15606= 16556 etuton ws exited ung monthly dain mineral wage comumpion namie In poet ae SE In = 1591-05007 coast ink, Q,=Matloné of ne tive mise water bette oh 7, Pace fone ve miner water bate = ce of one lero beverage bate Nese $3. ot hw on he ff eticens int ‘hoe | ene ae raat ca TT T a0 oz [Fait Pe | oat azar [tase] (0 tnd out or tte wail iglenc oT, vale a5 eel ‘Ans i ine ran oe {B.. 0730 ni © were (Seda) Nalthypoteie Hy: f= 0 Aimed "est ofsgniane evel of a Seve t24) mean he xl value the 0/2 level of significance; df = ‘artes soaf= 50-3 247, 50, ‘ager = 2.201 UL > tage fo we do not (02. () Based on $8 years anneal both mesbured In perscaage, te ol arm BBs ‘re rapect Conant 73 ‘Test 5% level of significance the cai that therein 20760 one trade off between inflaton an unemployment. Setup nall hypotheses erful.1s __veepastntoaucory Keenan [Semester VI-201 ro Hy: tieo once 2 ost tyeteee fone OATS ee (yg 420 cn at thatthe ho tae of bere a el {O50 Te purpose of i empl exe was oh ng ecm rlaton in US under went assur henge donoy teed {Drs ater 96 recent Te following Mada ea a Stving= B+ By ica ‘The Mode wat etinated fo te tine periods an residual a of squats was caine’ for eath tine pevods Tse resus Se sesame i atowing tbe ws Te) Moceis | tarts 2030 {sng his infrmaln peror Th Bow oat] TAB ‘1% level of significance. heen "3 O59 Sy) A SPT RSS aR) Oy + my = 2H) Here we can add RSS a RSS ocala! sm of 1S Squares (RS5yq) ee Rye“ BS, oS, Py Roses eben Hosa «ase Ruts, = Bais30-1190292/2 ‘GL70250)722 Ema From Fable, we find at for2 and 2 the 1 percent cael F value BA, (Hora) Ueonometncs fone reese sett aan ae ate pin oe pee any Dus to repression [Ane () Ana abe Source of vaiaton SS af MSS. BS ous HS 1 Raat 13 wa R55 155 ESS 6012-65 +77 5, @fetk= Horst"? 5 Gan skorts 312 wicae (23, Test the model for overall goodness of ft a “ significance Soc 28 oss ans 8 Bac B80 OT HMO CODES en Tes 2288 «36 ‘he cee va of ets F, set ale ine ‘keno impact onthe eges ont 5. i Clete the vue of eanss-1 °F noms 981Y_ Deepa -tntroductory Econometric iSemesien4V-201 BA. Hon) Eeonomercs [Semestent¥}-2011 (CBCS) ant 24.) What are pra consequences of mulcalinesry? wy ian, In cate of high mulialineriy, ones hale eccaner ‘otowing consequence 7 FiOS sotimates have age vances and covariances making reise etimaion fea 2 (antidence intevais tend to be much wiker, leading tothe ‘Aceptance tend tobe much wide he sero al see MANU,= 604+ 4391 GDF, Sex (3395) oo ines cross sectional data were based on heterogenous un is nda oa aoe nen at owing resus wee ttl of Sve oF more coticients tends tbe snc 2 asm Insignheone {) Use the value reported inthe austirycegresson * imipenem or moe concent I aeuncy [mda sce eee a ‘Pec the ts Ngeaseant Rte overall messuce of goadneas of Mt canteens fsgnineeiee Ne m7 hee gs there is no betroncedistty y= Hatoscedascty (ChSquare dtebation > ma 1228 05901 16048 eich mas asymptotic a Qaeequcedisbuton with 2 ihe 5% rca value for 27 599107. On the bat of white et there The OLS esinator and thr standard eres can etn eal n= 8543 + 06108 n cor, [teoncedasticty presen 1aan8 = 595) eases 5. i What are the consequences of hetroseedsticiy? arias ‘Aran the presence of hetrosedasicity estimators ae eebiased a) nae esitet. Bat the OLS ctinatore are no longt the BLUE Secs Sey rr = Guace mper wl of domenic cueney at constant peu font isnt i en Inefcen Yo. ia ae of DE, ~ Gross domestic product at constant phean {15 A Inde of elatve price of impos expressed in emetic curacy 28blea lubes he ede the pence of fat nr es ‘ported shove 7 0 yon id 1125 tg: P= 0(opostve autocorrelation ne Hy: Pe 0 (nut coelatn) 5.0) Te purpose of is empirical exercise was to analyse the impact {ake overs on CEO compensation. The motel ot mveca oak ‘Comp, B+ By SMP; + yD, « BD SAAR) t, Comp = CEO compensation in handed of tapes SMP = Index of frm’ stock market penoreanee : fe defined a1 the another fn, @ so Le Dz Damay vue dfn heft segues another em, Ss a eae Seer and mena un, Paani 23 dons. The eis re summaseed mae ae a pia an athcient | 4,50 eject the nll hypothesis that no posive sto coceltion rscsser | senor {O52 Based on data on value added in manufacturing MANU oa ssesres | ttnse7e GDP for 28 countries in 2010, all messed in millon of US dol et sisran__ | epecoone following regression results were reported (standard err In baoeaieondW2__Deepatntodctory EeonomsrcsHemesterIVF2011 {0 Tes the hypothesis that compensation’ eto with sock ma etomance renin he sme tsps of eaver ade 9 he q os. Hy Hesdeed sre IT = BE ser Ciel alse ogy longo 44 «30 ‘nas 200208 Har Ut > fgg oF 97 > 2080 ec the the compass ration with the stock marke pero eae disor tr diferent ene (Qs GA rsercher computes Jrgueera at nla, fora sap ar Onin, Does 0 provide cidine fe fatter oa ae {Sn tlm, Use 5 tee of egnfane” Tan J tet sti: tips Resdualae normaly digebuted A, Resins ae ot socal hated Aone ie forget allow te eatbuon wih 2 18 siataiewoat50 2 bso va 2 «59017 in the regresion mode ¥,= Py «By «tp euppose we ob confidence interval for Bn (04934, 1845) we fan ay thatthe proba {35% that thi interval Includes the By ‘Ans. The present statement Incortect Contidence Interval Fa~Bp. Shits can be examined by inroducing a dummy variable ina funtion tt Coar Pye, a ‘es eneumption function sappne we want dy he consumption pat diting the war and peace perio. Faris we introduce dumy vase in model 0) Coo, + BY;+ 0D, +H ‘he stope ofthe consumptin function (MPC) coms ame both a Roem Nionial period hence the fo zegresion line ae parle 2 Une of dummy variables for measuring the change in paramciees 1) ovetime, Suppose the war ime condos reduces the MPC hat Tipe cates) Eat not the constant frm i the consumption Mtn The consupton function assumes the form +BY, + BD + 1 le noemal period j= 0 fr wae pei BiG /Dy= =a) = 0 “B% BG /Dy=0= 04> Bi, ore eerept ran save But thee i ony charge in Bln MPC (ope “et the Bypass . a . we Die Bln he wae pes) C/O, le 03) = PY Eonar ‘ets thenypotent where ay #020 ag 0 then connenpton pater en sare ding th war pid net of wa nd Fa Ge crsumpton pater wil chnge and it wit ave elt ct Hyrdya0 1 y= 0, then harem erence been corm In prace and war 4. Use of dummy yaables for mearuring the change In both intercept stop (MC) coe! overtime. Te urd post of distinguishing eee wor tne sn pone ine fein el ot necep (epresenting tence levels) and spe (NFO) cote ofthe consumption change egreson equation would Be226060 GERS oe eevee evuy \ m B.A. (ons) Econometrics [Semester IV}2012 (C39) Deepa: introductory Economutrcs [Semester iV}-2012 Samana Pica sim eesnn eli Fst quarter ofthe year erated a the base year The relevance of the ‘scasna elects can nov be examined by testing the hyper tat By Be Brae jy a0 (23. (a) What are the properties of good extimats? ‘Ans. There ate following propetes othe good estimator, 1. Lineuity An estinatoe i sd tobe near It can be expesed a8 3 linear fenton of Y (Zependent vase a-rcr, 2 Unbsnetnen: A eintr ai oe unbiased is expected edie 14 £()—0> 0 then estimator ls ups bined {££0)~0-< 0 then etna edema biased arts war) 4, Sulficteney: An estimator 8 Is sid to bes sulfites extnator of parameter if ues information hal he given samp can urish ‘bout the population Sample mean ia suliientextinatr of the population mean Lay fr lage samples ‘eS Constent estimator An etinstor ea tobe a content estimator Fpopltion parameter. 8 he probably that 6 approaches O61 at f Becmes Inger and lege te denny i pa pe ni Sao Eee ee et ae oacpen . seater rar a tet ein Sper men doy! i ap of yi adie ss ae a rae 82.-80e bse whee 9; tcl ue 2. bases 2: menses Os Sette snes tnd tna’ gu SEAS a aay mals Ge Ta joins RUS Co da a a 3 [Ans Dutbin-Wsson teste of general nd conceming aut creation swat developed by |, Dubin and G Watson in 1951. Thi tet en what fe “ually refereed to as Durbin Wate statist and ir bana on sm of outed fierce in the succersive value of estimated diturbance Wem Lenuat Lennar eee ee bi be ‘This test appropriate only forthe Ss order ast regressive scheme Pate x + BX, Hest quarter equation (a=) + BX second quarter equation Y= (2+ By) + BX, dd quarter equation Yea (@+ B) + BX, fourth quarter equation “The significance of the intercept wil reflect the presence of easnal 14 possible that only some of there diferent inverepis are stati tlgniiont so that only some quattere may reflec the seasonal llc. Hi-+0)-01 a9 ian estimate is costent bot Six mee a al 3.0) Explain the Dubin, Watson let of auto coreation“The test may be outlined as flows, The null Bypothsi is: Hyspe0 or Hy: the ws are not ato corelaed wh st order scheme Hyipe0 Hy: he's ae auto corelated with art order scheme, To est the nll hypothesis, we use Dusban-Wation sais Bera Pded—tea a Be ze ie bee ze ‘But for lege samplag the terns. 4. Sa and Seb ae equal theeore ag-1 4) 20-8) ‘hereore dx 21-8) “The value ofp ies betwen - Fin thre sno ato coeeation B =O and 4 2 Second If thre i perfect pstvecorelation 8 = 1 and d= 0. “Thirds 1 here is pect negative corsation. feerer ‘This can Ue explained with the help of figuie if « 4, we jet the nll hypotesis (Hy) of autocoreation aed ‘cep that heels postive su corelation of the fst order. 2. 1fa> 4-4, we rjc the sell hypothesis of autocorrelation and 3th, cdc 4d, we aceept the mall hypothesis (Hy) of no auto 6 dy ded oril t- Cates 1) othersise legris, Ws have asignd two dummy aldfom for the marginal effect of ¥ ith ape sot ftinteme of only ‘Ana asty of ¥ wt X 22 ke Bk aaa Beem +B i {i Assume without loss of generality, By = 0 and B, > 0, By > 0. For what value of X wll Wis fanetion stains minima? Draw a ough sos forthe function, ne yoiicen(2) ty Y with cepect to X and expres Boahonek Introductory Econometric. 2013 1 BA. ons) Eeonomes-CBCS Part th INSTRUCTIONS FOR CANDIOATES Aten any foe question. 105.) Why we need cconomescs atx separate discipline? (7) ‘Ans. Economatrice an amazin of ecorame theory, mathematical sri, economic state, and mathematical sass. Yet the sect res to be sted Ih sown ght forthe ellowingFasons ‘Economic theory makes statements or hypotheses that ace mostly aleve Is nature or example, mcroconame theory ste that thet rece the uanty demanded o that coment. Thus economic heony fuss a negative inverse reatnahip between the Pie and quany anded os conmodiy. Bu the heey Fal den Nt rvs ay Sy how sch the quantity wil go spor down nua ert of cermin eine price of tw como tthe obo the econamcran to ide such numeric estimates Sined aillereny,econemetis Ive eal content wo mast econori theny. “hema once of mathematic economics ito expres economic theory a) without regard to messurallty oF ory Eeanomatse, as nota previously. 1 tig ce ee. a puts thee uations i sucha form tat end themesves to erp esting. And tas conerson of mathematical nematic eusins fuse a get desl of gery and praca sl Teonom statics is mainly coneaned with collecting procesing, and ing acon deta the form of cares abies ‘Those ae he obs he ecteom statsuran It i hose who Is primarily responsible for ing ata om gross rational product (CNP), employment, unemployment end 20 08 The deta thus collected constitute the raw data for metic work. But the economie statistician does not go any forther the elected data to tet economic thot,185__ Deepa tmrodutny Benomet Semester IV-2013 Although mathematical satis provides many tools used in he we the ecoramatican fen neds spec ethos i wo the nique | af at ecorac dat rely that he a re ot generated a th el ‘ts contoled espedment. The eonomeccan Hee the maeerlgie {erally depends on data that cannot be conled ie As Spe Eerrealycaerve in ecooric the model is fe faced these! a oppo to eyerinnt! data. THs has to important implcstne for enfia Padling in economics. Fist the Modeler i Fequtted taste rey Siferen sis han thse need for analysing enperinetal data Sec She separation of the data color and th ats alt ques the eda to familaeze Rimseli/berset thoroughly with the haturé and uct e fain question ‘Q1. Explain Methodology of Economeiis Ans. How do econometicans proceed in their oasis of an connie prclen? Tat wha ther methodology? alinouph here se opel Sehools ef thought on econometric methodology, we present Reve e trina or dase! mahodology, which sl ota pl sea Ii economics and the sacl and behavioural sence. Broadly speaking, tational econometric methodology proces lng the flowing tne oh 1. Statement of hry o° hypothesis 2 Speciation ofthe maternal mode ofthe theory. 3, Speaicaton ofthe stitial oF enema, model 4. Obaning the data. 5. Estimation ofthe parameters of the economic model + & Hypothesis tating 2. Forecasting oF peeicion 8. Using the mode for contol opi purposes. 24. (Esplin types of econometric ‘Ans. As the clasieatory scheme inthe following figure suggest econometrics ay be divides int two road calgore fara ‘names and ppd ono. In each category, one can approach the object inthe casa or Bayesian tain nts book the emphasis io ‘he dascal approach For the Bayesian approsch the reader ay co the flerenes given the nde the cpt, 1A. Hons) Keenan [Sementer1V}-2013 (CBCS)_19 ‘Theorelel econometrics Is concerned with the development of propriate moto for measringeconone elatenship spectied Oy zvcmcsc models tn th tape econometrics leans Reolly 6 inser er nos nie is bo seat squtes Teresi econometss most spelt he sumptions of This method, ie properties, and wat happens fo thee peries when one more of te ssumpilos ofthe method are not isa a . Inapled economies i ue he to of theoreti eonomeis ty Se pal ty een and bss, ch a be pod eck ment uncon emund sod spp functions portal toy “his book ie concerned lagey with the development of econometric acho rrp, he tas on hel tan The etods eine whoop fo wa oe or a fe ribs as book of applied ecomomec nthe 2 he ey in sy pecuse 2 el of coor aptnton That best tity con ten spetcaly for ths purpose. Rares fo ome [Ess ae provided tte en tis book B irccut te Eo 02-1) Move at Repolen ote fs gel oF B, ration co-ettet ans ie Divide and mally by 292 e e e ca © Ol - & - - o e & & o © eo e & a~vvyvuwuoUuUueUuuUuseUee eC eee 190___Despa:truoductry Booomnets femeste1V)-2013 BA. (one) Eeonometis [Semester V}-2013 (CBCS)__ 191 Pe 102. (2 Why we add disturbance tem yin the model ® Yaa BX, Pe "To test goodness of Mt, lets now cons ‘nd examines goodness ffi ‘Ans The ditaance term is ded to asident for: 1. Ero due to omited variables, 2. Exar due to mathematical misspecification 4. Ero due 0 aggrepation 105.) Esplsn goodneae off (Ro coefficient of determination: 0) ‘Ans. The gene linse regression model with explanatory vacate can be expresses Po By Bake —Bak where Tiago 1 the with obetvation on the dependent variables, % Xo Hate Independent or explanatory variable ‘y's the random disturbance term a and Pate parameters fin arb, Here js the peice val of @ and faethe predied vale of tre autre a and Suppose a simple liner regression hasbeen esi’! bythe met of = coieltincoaficint est squree. ‘Some Points fr comprehension 1 fgg Hy coieationcoefent symm. 2. Conti coefcat 3 ths we kw tat, we die Suatng and summation Both sides: tuts ai ee14 _Veepa: introauetory tconometncs jemester-tVj-2u1s aye auf teh e2H.q) = Pea eatye + t+ ‘adie "sateen scien Sorasseessk Divide ot sides by 3 Bt ia Bf Bi + 1-3 = Contcen of termination) 2, Eeplanadsumofique |, Resa sum of ae 2B -Tpalamotaqure " Tauanal ee ‘is shows tat ines Between Posi i ies0e Ri, avay postive 2 our firs preg than 24-0 md Rea \ Satie eter ecto four epimaed simple repression tn & soauinal @ <0) benta = SyPand 2 ; Tie ror 9% te cafes bat AE Soro thn or ot prc nase of aot Ma OX, vane doh bax 103.0 Pave hat content of detentions gual conan codttcent (4. What are the consequences of Auto Corelation? Ans When the ditubsnceteom eit earlalcorelation the value a¢ Las SE. of the parameter estimates are elected. Following ae the elles states, IOS method applied in presence of autocorrelation in the en daa [Linearity and unblsedess remain unafeted in he presence of to coreatio}. 1. Linearity: I the presence of auto corelation, OLS simulators cemain se we know that i OLS method. jet oo Ree ‘Ane, We know that 6960600000999 990 C90 PEOevvuvuvverridbdbddeddere Deepa: Inreducory Economies (Semester 1V-2013 B.A (Hons) Econometrics [Semester IV}-2013 (CBCS) e=0) 3 The OLS etna ean consis inthe presence of Autooieation 4 Blficiency: In the presence of Autocorelation the variance of OLS etimatos are In ficient of (under exinatesh, Tat ek tee ne ly to Be larger than thove of ther tna Variance = EB He «Bay ~ 9 Ba TDP Beh 8a. WDB Ba + BS 28, Byte Hl Dyas Bad) = BES + BB Blige + Dp Bed = $28,054 Een) Fenty arnginu) Tis shows that O15 eatin cone tea esi in a pretence of haneaslson note EEL 2. Undated: OLS etnators emai nbc when Autcorn oor Piet prsen Var Gy Era af age? fut Astooreatin is saan then Ey) = O and B25 (0 +6x +6) Bi =orh,+ 9585,+ 28, However iti cbrved that Ee == 39.4, 7 9120 but is esl topo te such th 0 9) + 28,09 vee 6) = 22 Eh tet 2G) =0+p+0 Baar 26) = -2. All hs shows tat OL estates ean unbiased when Ato 3 an — 0 ‘Var (§) under non Autocorrelation and. 264? 2% Bxa1 Var = = - {Compaczon of fq. (1) and 2) shows that Eas (1) is equal to Egp.2) =f an pis term that depends pen () and sample covariance betwers the96 Beepasntoductory Eeonametrs [Smeser4V}-2019, nue token by & I general we cnt ll wheter varianée (i a ex grather thn variance @) under auto cortelton. {the vaciance of the andor term may be underestinated Is 3 aut ected pstclacly when ws are petively aut crelted rr pao envied the prediction based on OLS exit tec o cuae Trt variance are underestimated whan W's ate autocoreated i Paden wh wl eect th oto aa Saippate ine “ay vaing ts fr 56 indivi he flowing model of wige detinisaton nin enaet og = By BD + Bs EDV, + to iy wages In te, B = Gon vara for gender Ease yar of econ Det treated Deo tales ‘he tube bro give the elise segretson coven and th standard coe C Cae SERA Comat [03850 ais > om asso eou_| _cos20 2080 (0 We the epretsion equation relating log (0) to EDU to males and females spat Tans, Mea wage for fale logto) = By +, + EDU, +, log) = 0360 - 02270 + 00820 EDU, logs = 0162 + 00820 EDU, Mean wage for male Tops)= BeBe BDU, + 4) tog) = 03680 + 00520 EDU, (id Us the dilference between mean wages for mate and female salsicaly significant 3t 5% lvl of sgnfisnce? ‘Ans Nall hypothesis BA, (Hons) Econometrics (SeieertV-2013 (CBCS)_197 0am Tet saitens 220 6 O20, 1351 ata vues ee tpg dt oo 1 malt hypothesis. However, the serene btn can wage for tle ani i et Satay sents. gs 0 Bt on atte ebervton nappa onsnin rgrssed on disposable income Yoy ahd one Pe z rable "The estimated lest squares equation ff G #168 6 0086 ¥5,+ 091 G4 Sex (439) 2028 (oss00 Dus 156 Re 0999 ich et shold sed tots the presence of AR) keoe procs in this set Desrbe the tet performs hs teat 8 level of sigaiance? Ane (No autocorrelation) Hh, Pe (autocorrelation) ‘Des 158 K so 2, 158, dy 168 From the Durbin Watson table, we find that 147 observations and 8 ane 1564 and dy 1.65 atthe 5% level 1 + bet 4 ee Os suite met he towing semen tse that grain model r= Pe ae wppne meal 239% eaters ie aban by tte peshy ese ce edb 3 ‘oe The pet amet ee eseeevgcererserreegpeecweveveveridsbdrdiddders A. (ons) Eeonmais[SeesterV}2013 (CBCS)_18 198___Deepasiatoducory Eeonanetic Semeser4V}-2013 CConidence intrest here sl te indents vale fhe vrs as deviation fom thee respi mes. iby 8503

9 B-P ox Du ‘o0m20 ono eh tite tne rogrnin ston rating tg) ov forma female separate "Ans Mean wage for female logt)* By +P + Pa EDU, m, tog () = 03890 ~ 02270 + 00820 EDU, or log () = 0162 + 0.0820 EDU, Mean wage for male Tog(u)= By + B:EDU, + fog (8) «02890 + 0.0820 EDU, Here < fgg 30 we do ot sjct the nal hypothesis However, the teence beaten mean wage for ales and females isnot matically Sex (4.49) (0028) (0.0308 Dus 1560 Ros hich test should use ots the presence of AB) enor process in this ode? Deserve the test perform ti 50 4.21504 dy = 1665 From the Dusbin Watton table, we find that 147 abservation snd B vada dye 1580 andy te 1565 the 9% lve 1 10 Here d« ds rec he nul hypothesis that no astocorsationfh 5.) From the erneactonl dat Deepa :tnroductory Eenomese [Sees VI-201¢ BA. (ora) Econometrics SemenirIV}-2014 (C8CS)_27 2, Because of consequence 1, the confidence intervals tend to be much sstimaed the following rogrnion satel ‘wider, eading to the scaptance tothe zero nll hypothens mote Ings By + Belay # By Im res 1+ ro of tne tne fll govt Toate 2. The trai of one ot more coutctent tends tobe stttly Xe aio he um of exports» pert te GNP Tpatia. X52 -GNP per coi A. although the fai of pe oF more c-ficlats stay Sf or sacl bp igen the oneal este of gros of canbe vey Here pothesis were that Yan X, would b Me and 3, would be negatively elated, 2 "tN2 BY Positive elated and'Y 15. the OLS estimators and thee standards esr canbe sensitive io sal 5 ‘Biogen dt ‘Wh oe wih sever mulalinay one fhe spl hing do Thon feteaay cline ate or nit ere om te enion sade Bat here speciation bias or pelicalion ero aries from nore eciestin ofthe Model “S817 + 2560 1n Trade, + 06818 n GNP, 40s Trade? ~ 00451 GE} «ais dn Tne Re ann “he tet satis for Whites tn fortis seression site the nll soph de i earings wal hypo a Tee 1) at probe icy tobe encountered? Bape erreay ‘Ans tthe ceearcher wants aks m dummy variables for m categories, Cases eae Sree i esa fh mol np Te reo a he eae up of day vvbl form cteogted iso intrep you ave 3 eae {10420 = i wh fo snmp «Chagas dan [ees ey eel any ee ap 7 (26. Suppor Netrorceduntly i prerentneegresson model and ‘The 55 ctl ehbaquare value for Sd i 1.0795. On the bso he see procedure sapped tena te paces af ‘White test that there is no hetroscedat Cs "or the properties of the estimator? ® edatcy estimator ace unbsed and ‘olga be BLUE Geese they re mn pedition wil be iefent ton sf constency ft covarnce atx isthe lest of hypothe (teat tes) eoreaecarpeeo saan nm oneoe conse? sty your anaes carefully fg, resin csi we choos ghee of ign Wy tobe sigur, men Sra ed ye eer er of exploatary vases na maltpe incest equre ‘o only pose when al the vaibles ue the greater the vale. Ths the Feve eesedddsdbrdddddeoe 20__Deepasinvoducony Eeoometies SeneneeN TI {et which a meaute ofthe everl sgn of he etna epson SR atone Sly pmb op 22. (9 The vane of OLS estimator il be high the ane N ee) ame ofthe Coenen tory Econometrics, B.A. Ulons) Economics ‘Ans. The present statement is incorrect. Bucause variance inflation ctor 1s men sso pec oe we sa oa ae wee gi tape iin the es CCS Sean That is as the extent of collinearity increase, the variance of an estimator INSTRUCTIONS FOR CANDIDATES. snr a a Sa he tap ai fie on ice tts um ve tat var (hy = Zvi ‘An. Dumony Variable rap, The dumeny vaible tp that isthe iation = ifs linry pret mult ecgn lr bre dae ‘Suen hn the va Tis le ap dake Sor tan ne glans cesses Lethe cher wan bem amy wate fr eg ‘what should be dropped from the model? ic teria iae mommy ves fot eee io he Stn oe te a igure The os Be sup os dummy vrai mcotgore anno at were ee fave eof per cones that net Enea ash eng Var i) = 2 vr oS Which shows that the vasaee of fy andy ae rey ropotoa 6 te {Q.7. (4) A Durbin-Watson tet stsic cote fe soto Indicates the presence af positive auto cretion, ‘Ans. 1 Dutbin-Waton tet sate vale le (9 210, it mean mode as pative auto corslaton ue a- ap {2.3 () Using data on labour and cpitsl for 123 firms, the Colete Dovgios poison function is estinnted nd flowing seein fess ‘ue obinined Standards errs se given in pavetaese “yourrn * 0790 + 0988 IN CAPITAL, + + O28 9, LABOUR, 8) (ca008 A indicating pete postive coeition in resus = 0 (22 oa AN CAPITAL = Log of capitat (0) Name of the functional form ofthe regression Model, Ang. The mode iner in the prams The Clete Douglas prodvetion| function ists shacastic fom is . Baw YB, Xy ye Ys ouput X= Labour inp, % = Copa np. Wis lear that the reationship Between outpt and two inp is nom near: However, fe log tanelorms {EN OUTPUT » ENB, « BLN Lal ey{Q2) The dats pein to consumption of cups of coffe per dy ard apd By pontner inte wh etal pce of cafe OD in the United Sates fo the yes 1970 1S “Tan he mode natn pares BBs eo PSE He gfe Ps Spt 8 opng OLS to te at, oan he ating rt ae aed “in near the slope coeliien Ie lates of expt andIabour Were 0.98 and 02h ently i bbs words ve te ped of sy, Rldng te cp fee zen -04rsx, sere a pte renin oot inp edo te average a ape cnet ineae inthe ouput Sn} bolding the but naa ew 20201 PS pect ness in thecal inp Te on he avenge se ‘Reet Scbe percent erase Inthe out sy "iy Wnt he naar of return to scale exhibited? nd from the sre data, the follosng double log oF cons a as rcp scien and capil eta) Roel Hine oho les» Mode ne ena gs 0204 e192, ele ves the vale ofthe ears eee caren as evden, 129 Bm were chraceriad y lcresing i : sexs) ©3190 ‘es ale Mey Pad ut the values of LN Isbour and LN capt, ssfoone ain __Despastmemedite Microeconomic [Semete 2018 fant elstiy pe Eintor-Parates ans tN bboun = Bal” earcnedataniadenes einaoS ‘the 2 for model A and Boe sbiained a 0668 and 07688 respectively, $518)" Esrated tarda ey nits con foe th r models om te bars of cosicientofdteriatlon een te pol Aa the pie of colesieteses, o,averops, alee contumpion gos down by abou Palla cup per day the value of bout HAN caps 5) ips a ps ae epi so i a he on tom on rate ot opty ne" SS wn + Hy: Ban on serge per sacle cna i She value of soe 074 mean ad explain by the vat ‘Sethe value of te (Mode ‘ae of 0748 ofthe loge ‘Show eae mode! Eeause Tn the egress nal ou cathr fo ebain dependable et aes «208 ster sereee gew-2= 201-02 _ 0001 ‘es asi08 re ‘bal om 128 fi 3.289. La a ce aclated vale ies han able van of G20) A revercher wanted (coin sion to peecpita CF swe enna oc the ll Bp nen tp “The flowing egesion rs Model = 3, +B, PONP, seem Here CM i numberof dat Lantos~vvweuvouudeessresiébecs 24 __Deepa: intermediate Mirosconomlst Fens Recent P= oes Howeve if FLR and important variable une trom a elevet he shove model then the following regression sea once Moser (04, = 174048 oon reNP, Ser 08159 aon Pa oaees (0 te cote ot section arcmin Mode 2 Een the concept of emited vat ben ‘a ‘Ans In Economie Omited-rarble bas occurs when a model cea’) incsrcly leaves out one or more inpoant acre see hen the model. Coropensates fore misting tay ty nt {sting the tect of one ofthe other fciots The eo nae ‘omiting 3 tleant variate (FLA), (Gi) Consequences of Omiting the vais, o 1 oe omitting a celevant variable in Mode it called mode spcleaion esos, 3. we eating FL in Medes cle underiting Mode The mn rseisn ofther hing moda ann ale me Incorrect estimated 2 The conidece internal aid hypotese eating procedars a ely {© 32/2 m a lending conclusion about the sates sgaonnee of Simard params 2, As another consequences, the foecss based onthe lnsret ede and te forcat internal willbe uncle, 4. The conventionally measured variance is «based etinstor oe ‘arlance ofthe tre erie, 1.9, Using time series dat for 179 to 209 fra cern economy te folowing mode of demand for money wis enated tn 19 ebseban, MD,» 8 + 82,» 8 INTRATE, MD's Quantity of Money demanded, mesurd in billion of copee Y= Nationa income (Re billions) lott: nterest ate In percent on 3 month seu il “The abe blow has estates of he coins nd thle standard Vasibles [Estimates of cotiients [Standard Exon] INTRATE toa oa Eeonamics (Semester tVL2015 (C8C5)__215, 24 tons) Economic Semesters (C8C5)___ ats (0) Ioterpe the slope cotients. o ‘Avs, fiD, = 0008 + 05305002611 TRAT E+ 4, As thre rests show the elastic of MD wth respect ys about 0580 suggesting that if nce nese by rape on rene AS Money) ges up by 83 pie I rupee» 160 pau) nese ari hy wh repent to INTRATE i aout 00261, suggesting ta I ean ‘scteased byt percent on average MD ows downby abe OUR vs bin, aeon0. ms {0 Ts te ove sgifcnc ofthe model a eel of sigiiance "coef of detention repete forte model ote Oe ‘Ans is 0519 | therein tina eltonhip betwen the Rand Fst wed in he says ql of veane, Aung te otal dsbuton fre dna a he sul potent or Hie, ein aa F Aiseuton with 2 and n= 3.46 F disbation= Tre ers tee variables (MD, ¥ and INTRA), So 3-1 =2 (ET andin-nion-a 0519/2" oa i Basin 3 wens Fe oases Ss ovat Tes eal value ofthe test Fi (bs, nt 3.74 om te F table we ee ei ae fr hr ean ‘the nl hypothe 3.252 > 0744 or > Feet, tha te oo ‘eases have impacto the rapes a ot wttecng the fet ot the is ony 0318, 0 Cones he pein mae te rosa nh between onthiy demand for piss) snd soa howseeld aces HUN) Ia rapce ca Yad 6 BIMIING, + 4