M.A. DEGREE EXAMINATION, NOVEMBER 2017
Third Semester
Economics
ECONOMETRIC METHODS
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 X 2 20)
Answer all questions.
1. What is disturbance term?
2. Give the meaning of exact relationship.
3. Define unbiased estimator.
4. Define correlation.
5. What is meaning of R2 if its value is 0.83?
6. What is Type I error?
7. Define Multi collinearity.
8. Mention the types of Heteroscedasticity.
9. What is Dummy variable?
10. Define ANCOV model.
Sub. Code
4MEC3C4
AFF-4789
2
Ws 2
Part B X 5 25)
Answer all questions, choosing either or
11. Define Econometrics and describe its goals.
Or
Distinguish between Theoretial Econometrics and
Applied Econometrics.
12. Compute the coefficient of correlation and obtain
the linear regression lines for the following data:
x 1 2 3 4 5 6 7
y 9 8 10 12 11 13 14
Or
What is specification bias? Enumerate its sources.
13. Explain the multiple linear regression model in
matrix notation.
3
Ws 2
14. Find the autocorrelation coefficient from the
following data.
lt 0.8, 0.2, 0.4, 0.9, 0.6, 0.5, 0.2
Or
Explain the Goldfield Qunadt test for the presence
of Heteroscadasticity.
15. Describe the features of Dummy variable model.
Or
Explain the use of Dummy variable as proxy to
numerical factors.
Part C X 10 30)
Answer any three questions.
16. Enumerate the reasons for the inclusion of random
variable into regression model.
17. Describe the Econometric criteria for evaluating the
estimated regression model.
18. Explain the use of dummy variables for measuring the
change of parameters over time.