# ISS (Statistical Services) Statistics Paper III: Questions 81 - 86 of 96

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## Question number: 81

» Applied Statistics » Time Series Analysis » Determination of Trend, Seasonal and Cyclical Fluctuations

Appeared in Year: 2013

### Describe in Detail

Discuss various steps of finding adjusted monthly indices of seasonal variations using link relative method.

### Explanation

**Steps of finding adjusted monthly indices of seasonal variations using link relative method: **

(i) Find the link relative of all the seasonal data using the formulae

Where = link relative of the current season

(ii) Arrange the entire link relatives thus obtained season wise and find

## Question number: 82

» Applied Statistics » Index Numbers » Demand Analysis

Appeared in Year: 2014

### Describe in Detail

Define price elasticity of demand and income elasticity of demand. Point out their uses in economic analysis.

### Explanation

**Price elasticity of demand: **

Price elasticity of demand is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price.

Price elasticity of demand shows the sensitiveness or responsiveness of demand to the change in price.

Price elasticity of

## Question number: 83

» Sampling Techniques » Simple Random Sampling With and Without Replacement

Appeared in Year: 2014

### Describe in Detail

Define linear systematic sampling. Does it give equal probability of selection to all the population units? State the advantages and limitations of systematic sampling. Can a systematic sample be drawn without a physical list of population units? Justify your claim.

### Explanation

**Linear systematic sampling: **

Linear systematic sampling is a commonly employed technique if the complete and up-to date list of the sampling units is available. This consists in selecting only the first unit at random, the rest being automatically selected according to some predetermined pattern involving regular spacing of units.

Let

## Question number: 84

» Econometrics » Auto-Correlation

Appeared in Year: 2014

### Describe in Detail

Describe the problem of ‘multicollinearity’ in econometrics and explain how will you detect it.

### Explanation

**Multicollinearity may arise for various reasons, they are: **

There is a tendency of economic variables to move together over time. In time series data, growth and trend factors are the main causes for multicollinearity problem. For example, in period of booms or rapid economic growth the basic economic magnitudes grow.

## Question number: 85

» Applied Statistics » Index Numbers » Laspeyre

Appeared in Year: 2014

### Describe in Detail

Define Laspeyres’ and Paasche’s index numbers. It is sometimes stated that Laspeyres’ price index number tends to overestimate price changes while Paasche’s price index number tends to underestimate them. Justify or refute the above statement giving reasons.

### Explanation

**Laspeyre’s Index Number: **

Laspeyre’s index number is a index number where the base year quantities are taken as weights. Under this method, we get the weighted index on the basis of aggregative expenditure, assuming that the quantities consumed in the base year are also the quantities consumed in the current

## Question number: 86

» Econometrics » Auto-Correlation

Appeared in Year: 2014

### Describe in Detail

Explain the term ‘autocorrelation’. What are the consequences of autocorrelation? Explain how the Durbin- Watson d statistic is used to detect the presence of autocorrelation.

### Explanation

**Autocorrelation: **

Autocorrelation refers to the correlation of a time series with its own past and future values.

It is a measurement of the degree of similarity between a given time series and a lagged version of the same time series.

It can be considered as a special case of correlation,