Question Paper Unsolved - Eco No Metrics

Econometrics April – 2002 60 Marks Note:

(1) Section I is compulsory. (2) Attempt any three questions from Section II. (3) Figures to the right indicate full marks to a question or a subquestion. (4) Answers to both the sections should be written in the-same answerbooks. (5)Use of calculator is allowed

Section — I (1) Explain the following: (a) (b) (c) (d) (e)

(10)

Econometrics. Closed input-Output Model. Endogenous variable. Critical region. Explanatory variable.

(2) (a)

(b)

Evaluate the following model:

(10)

Ĉ

=

300.29 + 7.42 Y + 8.044 T

ttable = 2.179

SE

→

(78.32) (0.0475) (2.9835)

Ftable = 3.89

C

=

Consumption Expenditure

R2 = 0.9976

Y. T

= =

Disposable income

n = 15

Time

Evaluate the following model:

Yt Se

=

7.1933 - 13925 X2t + 1.4700 X3t

=

(1.5948) (0.3050) (0.1758)

R2

=

0.8766

N Y

= =

13

X3

=

expected rate of inflation

X2

=

Unemployment rate

t0.05

=

2.16

F0.05

for

(2,10) df= 4.10

TY BMS – Sem VI

(10)

-

actual rate of inflation

Page 1 of 3

Econometrics

Econometrics April – 2002 60 Marks

Section — II (3) (a) Derive the coefficient of determination of goodness of fit for a Bivariate regression model.

(5)

(b) Estimate the demand function by using the following data: Demand

50

32

42

62

35

29

Price

10

7

9

11

8

5

(5)

(4)

(3)

(a) State the assumptions of a Multiple Regression Model. (b) Data on 89 firms gives the following sum of squares and the cross-products in

(7)

the deviation form.

y x1

y

x1

x2

114

37

100

50

-66

x2

967

ȳ =5.8X1 =2.9X2 = 3.9 (i) Fit the regression equation of Y on X1 and X2. (j) Prepare ANOVA and test the overall significance of the estimated model. F0.05 for 2.86 degrees of freedom is 3.10. F0.05 for 1.87 degrees of freedom is 3.95. (5) (a) What is meant by Auto correlation? Why is it experienced in econometric models? (b) What are causes of Heteroscedasticity? (c) What are the solutions to the problem of multicollinearity?

(4) (3) (3)

(6) (a) Why do simultaneous equation models require a different treatment? (b) Write briefly on:

(4) (6)

(i) ILS method (ii) 2SLS method.

TY BMS – Sem VI

Page 2 of 3

Econometrics

Econometrics April – 2002 60 Marks (7) (a) Explain the following with respect to input output model:

(5)

(i) Assumptions of the Open Leontief model. (ii) Backward and Forward Linkages. (b) Obtain the technology matrix and find gross outputs of the two sectors if the final demands change to 200 &800 respectively. Ag,

Industry

F.D.

Ag,

300

600

100

Industry

400

1200

400

(5)

Econometr ics April – 2003

TY BMS – Sem VI

Page 3 of 3 Econometrics

60 Marks Note:

(1) Section us compulsory. (2) Attempt any three questions from Section II. (3) Figures to the right indicate full marks to a question or a subquestiou. (4) Use of calculator is allowed. (5) Answers to both the sections should he written in the same answerbooks.

Section — I (1) Explain the following: (a) (b) (c) (d) (e)

(10)

Econometric model. Unbiasedness. A priori assumption. Endogenous variable. Type I Error.

(2) (a)

Coffee demand function is estimated by using 10 observations.

(10)

Evaluate the model.

=

Ŷ SE

(0.1262) (0.1140) ¯R2 = 0.6253

R2 = 0.6628

=

D-w

0.727 coffee demand in terms of cups perperson per

=Y

(b)

2.6911 - 0.4795X

day

X

=

Average retail price

t05

=

2.306

F05

5.32

dL

= =

dU

=

1.332

0.763

Evaluate the following model:

Y t:

=

24.77 + 0.94x1— 0.142x2

(3.69) (1.444) (0.526)

R2

=

0.956n = 10

t.05(7) Y

= =

2.365 ;

X1

=

Disposable Income

X2

=

Wealth

TY BMS – Sem VI

(10)

F.05(2,7) = 4.74

Consumption expenditure

Page 1 of 3

Econometrics

Econometrics April – 2003 60 Marks

Section — II (3) (a) Derive the following Bivariate Regression model.

(4)

Y1 = β0 + β1 Xi +ui (b) The following results have been obtained from a sample of 11 observations on

(6)

values of sales (Y) on corresponding prices (X) of a product.

¯X = 519.18 Σ X2 = 3,134,543 Σ Y2 = 539,512

¯Y = 217.82 ΣXY = 1,296,836

(i) Estimate the regression of Y on x (ii) What is the part of variation in sales which is not explained by the regression line? (iii) What is the average elasticity of Y on X? (4) 2

(3)

2

(a) Write briefly on R and ¯R

(b) Intermediate data on quantity demanded, price and income (in deviation form)

(7)

are given below— n = 10

¯Y = 80

¯X1 = 06

X2 = 800

Variable y y

x1 3450

x1

x2 -300

65,000

30

5900

x2

1,58,000

(i)

Fit a regression equation of Y on X1

(ii)

Fit a regression equation of Y on X1 and X2.

(iii)

Test the incremental contribution of ‘X2’ to the model (Use ANOVA) F.05(1,7) = 5.59

F.05(1,8) = 5.32

(5) Attempt any two of the following (a) What is Auto correlation? Why is it experienced in econometric models?

(10)

(b) Discuss the solutions to the problem of ‘Multicollinearity’. (c) Estimate the following model by using ‘weighted least square method’.

TY BMS – Sem VI

Yi

2

4

6

7

11

Xi

1

2

3

4

5

V(ui)

1

2

4

2

1

Page 2 of 3

Econometrics

Econometrics April – 2003 60 Marks (6) (a) Distinguish between single equation and simultaneous equation models. (b) Write briefly on identification problem in the context of simultaneous equation model.

(3) (3) (4)

(c) What is 2 stage least square method? (7)

(4)

(a) Write briefly on: (i) Open Input-out models. (ii) Hawkins-Simon conditions. (b) Given the Technology matrix, find the new output levels if final demand for two

(6)

sectors is 110 and 120 units respectively

A=

[

] 0.20

0.16

0.50

0.26

TY BMS – Sem VI Page 3 of 3 Econometrics

Econometr cs April – 200

60 Marks Note:

(1) Section I is compulsory. (2) Attempt any three questions from Section II. (3) Figures to the right indicate full marks to a question or a subquestiou. (4) Use of calculator is allowed. (5) Answers to both the sections should he written in the same answerbooks.

Section — I (1) Solve the following:

(10)

(a)

If Σxy = 19, Σx2 = 10 where x and y are deviations from x and y.

(b)

If R2 =0.5 and F value if n=10, k=3.

(c)

Write ANNOVA TABLE for single equation with one explanatory variable.

(10) (d)

Write formula for

2

(e)

2

= 5,37,192 where et is

If Σet = 5,73,069 and Σ(et - = et-1 ) residual. Find Durbin-Watson (d) statistic.

(2) (a) Evaluate the following model.

(b) Evaluate the following model.

TY BMS – Sem VI

Page 1 of 3

Econometrics

Econometrics April – 2004 60 Marks

Section — II (3) (a) Prepare ANNOVA TABLE for both the equations

(5)

(b) Verify that the value of average price elastically of the following estimated

(5)

demand function

(4)

(a) State stepwise procedure (Methodology) of conducting econometric study. (b) Examine whether following model is significant or not

(3) (7)

x1

2

1

5

8

7

2

3

3

0

9

x2

6

5

5

7

3

1

8

2

6

7

y

13

9

15

16

21

9

15

10

12 30

(5) (a) Define (i) Homoscadasticity (ii) Heteroscadasticity

(5)

(b) For the following data series to check whether there is autocorrelation

(5)

(6) (a) Distinguish between structural form and reduced form of simultaneous equations Models.

(3)

(b) Examine the identifiability of the following model. [Use rank and order method]

(7) Where L: amount of labour W: Wage Rate S: Sales P: Productivity of Labour

TY BMS – Sem VI

Page 2 of 3

Econometrics

Econometrics April – 2004 60 Marks (7) (a) Write briefly on:

(5)

(i) Input - Output Model (ii) Assumptions of Input-Output Model. (b) Given the Technology matrix find the new output levels if final demand for two sectors is 150 and 180 units respectively and labour requirements

(5)

**********

Econometr ics April – 2005

TY BMS – Sem VI

Page 3 of 3 Econometrics

60 Marks Note:

(1) Section I is compulsory. (2) Attempt any three questions from Section II. (3) Figures to the right indicate full marks to a question or a subquestiou. (4) Use of calculator is allowed. (5) Answers to both the sections should he written in the same answerbooks.

Section — I (1) Explain the following concepts:

(10)

(a) Econometrics. (b) Pooled data. (c) Closed Input Output model. (d) Homoscedasticity. (e) Null hypothesis.

(2) Evaluate the following models.

(8)

(a)

(b)

(12)

TY BMS – Sem VI

Page 1 of 3

Econometrics

Econometrics April – 2005 60 Marks

Section — II (3) (a) Describe the numerical and statistical properties of OLS estimators.

(5)

(b) Given the following intermediate results on total output X and total cost Y.

(5) (i)

(ii) Comment on the theoretical significance of (iii) Estimate the total cost for an output level of 95.

(4) 2

(3)

2

(a) Write a note on R and ¯R

(7)

(b) Given the intermediate results in deviation form:

(i) Estimate the function of y on x1 (ii) Estimate the function of y on x1 and x2 (iii) Prepare ANOVA table and test the overall significance of he Multiple Regression Model.

(5)

(3)

(a) What is Multicollinearity? What are its causes?

(2)

(b) What are the consequences of Autocorrelation?

(5)

(c) Estimate the following model using WLS method:

TY BMS – Sem VI

Y1

6

7

9

10

11

X1

4

8

6

8

7

V(ui)

4

6

3

5

4

Page 2 of 3

Econometrics

Econometrics April – 2005 60 Marks (6) (a) What is Simultaneous Equation Bias?

(2)

(b) State with examples what are endogenous and exogenous variables.

(3)

(c) Transform the following model into reduced form: C = a0 + a1Y + a2P +ui

(5)

I

=

b0 + b1Y + b2R + vi

Y

=

C+I+G+X

C

=

Consumption Expenditure

I

=

Investment Expenditure G

=

Government Expenditure

Y

=

National Income

P

=

Price Index

R

=

Rate of Interest

X

=

Net Exports

(7)

(4)

(a) Write brief notes on: (i) Technological Viability. (ii) Forward and Backward Linkages. (b) Given the transactions table, obtain the technology matrix. Compute the new

(6)

output levels and labour requirements if final demands change to 600 and 400 respectively. I II Demand I

240

100

II

40 110

350

TY BMS – Sem VI

Final 60

Page 3 of 3 Econometrics

Econometr ics April – 2006

60 Marks Note:

(1) Section I is compulsory. (2) Attempt any three questions from Section II. (3) Use of calculator is permitted (5) Answers to the sections should he written in the same answer-book.

Section — I (1) Do as directed:

(10)

(a) Differentiate between estimator and estimate. (b) Let X = Income, Y = Expenditure, Correlation coefficient between X and Y-rxy = 0.9 Compute the coefficient of determination and interpret its value. (c)

(regression coefficient) Find and interpret the value of average elasticity of demand with respect to price.

(d) Differentiate between Simple and Composite Hypotheses. (e) Define Power of a Test.

(2) Evaluate the following models.

(10)

(a)

(b) Aggregate consumption was estimated as a function of profits and wages by considering ten data points.

Evaluate the model on the basis of Statistical and Econometrics

TY BMS – Sem VI

Page 1 of 3

(10)

criteria.

Econometrics

Econometrics April – 2006 60 Marks

Section — II (3) (a) State the properties of OLS estimators.

(3)

(b) Consider the following data Demand (D): 10

20

23

25

42

Price (P):

7

6

4

3

8

(3)

(i) Estimate the demand model D = β0 + β, P + U.

(2)

(ii) Predict the demand for a price level of Rs.10.

(2)

(iii) Compute the coefficient of determination (4) Intermediate results based on a sample of 30 observations are shown in table below (Deviational form):

(5)

(i) Estimate the multiple regression model of Y on X1 and X2

(3)

(ii) Find partial elasticity of Y with respect to X1.

(2)

(iii) Test for the overall significance of the regression (F 2, 27, 0.05=3.39).

(5) (a) “In the presence of perfect multicolinearity, the OLS estimates are

(6)

indeterminate and their variances are infinite” — Discuss. (b) Define Durbin — Watson d —statistic. State the limitations of the D-W d-test.

TY BMS – Sem VI

Page 2 of 3

(4)

Econometrics

Econometrics April – 2006 60 Marks (6) In the context of simultaneous equations models, differentiate. (a) Structural form and reduced form of the model.

(5)

(b) Rank conditions and order conditions of identification.

(5)

(7) (a) State any four assumptions of open Leontief Input — Output Model.

(4)

(b) Obtain the technology matrix and find gross outputs of the two sectors if the

(6)

final demand changes to 200 and 800 units respectively. Agriculture

Industry

Final Demand

Agriculture

300

600

100

Industry

400

1200

400

**********

TY BMS – Sem VI

Page 3 of 3

Econometrics

Questions Bank from Management Paradise