ISS (Statistical Services) Statistics Paper III: Questions 84 - 89 of 96

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 96 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 300.00 or

Question number: 84

» Econometrics » Auto-Correlation

Appeared in Year: 2014

Essay Question▾

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. The income, consumption, savi

… (333 more words) …

Question number: 85

» Applied Statistics » Index Numbers » Laspeyre

Appeared in Year: 2014

Essay Question▾

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 year.

where

… (389 more words) …

Question number: 86

» Econometrics » Auto-Correlation

Appeared in Year: 2014

Essay Question▾

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, except that the same time series is used twice: once in

… (404 more words) …

Question number: 87

» Applied Statistics » Time Series Analysis » Illustration, Additive and Multiplicative Models

Appeared in Year: 2014

Essay Question▾

Describe in Detail

What are the two mathematical models employed for time series analysis? Can one model be considered as a particular type of the other one? Which one of the two models is considered to be more useful and why? Discuss each of the above aspects.

Explanation

The two mathematical models employed for time series analysis:

(i) Additive model

(ii) Multiplicative Model

Additive model:

According to the additive model the time series can be expressed as

where

is the time series value at time T

Represents the Trend value

Represents the Seasonal value

Represents the Cyclic value

… (336 more words) …

Question number: 88

» Econometrics » Heteroscedastic Disturbances

Appeared in Year: 2014

Essay Question▾

Describe in Detail

Discuss the problem of Heteroscedasticity in GLM. Describe Glejser test for detecting hetroscadasticity. What are the difficulties in using Glejser test? How do you overcome these difficulties?

Explanation

Problem of Hetroscadasticity:

  • One of the sources of Heteroscedasticity is grouping. data from large scale surveys are often in grouped form with an different number of entities in different groups. Working with group averages in such cases give rise to Heteroscedasticity disturbance.

  • There may be certain outlying observations in the data wh

… (385 more words) …

Question number: 89

» Applied Statistics » Index Numbers » Price Relatives and Quantity or Volume Relatives

Appeared in Year: 2014

Essay Question▾

Describe in Detail

Discuss how you will proceed for constructing a cost of living index number for a given expenditure group in a city.

Explanation

Steps involved in the construction of cost of living index number.

i) Scope and coverage: Since it is always constructed for a particular community, first step is to specify the particular class of people for which the index number is going to be constructed. such class may be industrial workers of a particular locality, government employees of a

… (405 more words) …

f Page