# Econometrics (ISS Statistics Paper III): Questions 18 - 21 of 21

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: 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?

## Question number: 19

» 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.… (358 more words) …

## Question number: 20

» 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,… (611 more words) …

## Question number: 21

» 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?