ISS Statistics Paper III: Questions 38 - 42 of 90
Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 90 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.
Rs. 250.00 or
Question number: 38
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2011
Describe in Detail
If is an individual’s utility function of two goods, show that the demand for the goods is and
Where and are the fixed price and µ be the individual fixed income.
Explanation
For consumer’s equilibrium, we have
and hence, we get
→
→
→
→
→
→
→ ………………. (i)
since, µ the individual income is fixed, we have
→
→
Substituting the value of in (i),… (5 more words) …
Question number: 39
» Econometrics » Auto-Correlation
Appeared in Year: 2011
Describe in Detail
Discuss the effect of imperfect multicollinearity on tests and errors. Consider a model
with
and with
, ,
and
Do you think multicollinearity is present in the model? If yes, give reasons. Further show that as
increases, also increases.
Explanation
Effect of imperfect multicollinearity on tests and errors:
-
OLS estimators will be BLUE, but they have large variances and covariances. this makes the estimation difficult.
-
The confidence intervals will be wider. and hence, we may not reject the ’zero null hypothesis i. e. , We may conclude that B’s are… (163 more words) …
Question number: 40
» Applied Statistics » Time Series Analysis » Exponential and Moving Average Smoothing
Appeared in Year: 2011
Describe in Detail
Explain moving average [m, p]. Let with p = 1 and m = 2k + 1, obtain the coefficient of and [m, p]
Explanation
Moving average: moving average method is a simple and flexible method for measuring trend. It consists in measurement of trend by smoothing out the fluctuations of the data by means of a moving average.
The first element of the moving average is obtained by taking the average of the initial… (285 more words) …
Question number: 41
» Applied Statistics » Index Numbers » Price Relatives and Quantity or Volume Relatives
Appeared in Year: 2010
Write in Short
Discuss briefly the steps involved in the construction of cost of living index number.
Question number: 42
» Applied Statistics » Time Series Analysis » Economic Time Series & Components
Appeared in Year: 2010
Write in Short
Discuss the ratio to trend method for separating the seasonal component in a time series.