Econometrics (ISS (Statistical Services) Statistics Paper III): Questions 12  18 of 21
Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 96 questions. Access all new questions we will add tracking exampattern and syllabus changes. View Sample Explanation or View Features.
Rs. 300.00 or
Question number: 12
» Econometrics » Autoregressive Linear Regression
Appeared in Year: 2011
Describe in Detail
For the autoregressive scheme , show that if e is a random variable and the series is long, then
and hence show that, variance of the generated series may be much greater than that of e itself.
Explanation
Given autoregressive scheme is a second order Autoregressive series.
……………. . (i)
Since the series is long and , we have
and Var
Squaring both sides of (i) and taking the expectations, we get
→
… (205 more words) …
Question number: 13
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2012
Describe in Detail
Discuss the practical consequences of autocorrelation. Show that
Explanation
Practical consequences of autocorrelation:

OLS estimators are still unbiased and consistent.

The variance of the estimators are underestimated. In the presence of autocorrelation , but Thus, variance of may be either over estimated or under estimated depending upon the n
… (232 more words) …
Question number: 14
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2012
Write in Short
If the demand curve is of the form , where p is the price and x is the demand, prove that the elasticity of demand is · Hence deduce the elasticity of demand for
Question number: 15
» Econometrics » Prediction and Simultaneous Confidence Intervals
Appeared in Year: 2012
Write in Short
Discuss forecasting accuracy and Theil’s U coefficient.
Question number: 16
» Econometrics » Autoregressive Linear Regression
Appeared in Year: 2012
Write in Short
Obtain the general solution of firstorder autoregression model.
Question number: 17
» Econometrics » Autoregressive Linear Regression
Appeared in Year: 2013
Describe in Detail
Obtain the complementary function and particular integral of first order regressive model. Show that is a moving average of random elements with weights,
Explanation
Let us consider the first order auto regressive model
……. . (i)
this is a linear difference equation of order 1. its complementary function (C. F. ) is the so; ution of
which is a homogeneous linear difference equation of order 1.
if is the trial solution, then
ignoring the trivial solution
Hence
… (127 more words) …
Question number: 18
» Econometrics » Ordinary Least Squares (OLS)
Appeared in Year: 2012
Write in Short
Let the demand function be expressed as. For what value of X, the elasticity of demand will be unitary?