Econometrics Prelims Question Paper – Vipin Saboo Tutorials

ECONOMETRICS

Solve both the sections. Answer any 3 questions from Section II

Section I

Q1. Explain in short: (3*5 =15)

1. Level of significance
2. 2 person zero sum game
3. Hawkin Simon condition
4. Multicollinearity
5. Endogenous and exogenous variables

Q2. Evaluate the following cases: (9+6)

a.         Y=  1.2717 +   1.0691X

S E     (0.0123)    (0.2136)

R2= 0.9612,  n=22

d-w= 0.2889, dl=0.7623, du=1.3447

F0.05= 5.35,            T0.05= 3.47

Y=GDP

X=GNP

b. Obtain a reduced form

M= a +bP +cN +u1

P= d +eM +fR +u2

Section II

Q3. a. What are the properties of OLS estimators                            (3 marks)

b. From the following information, compute the partial co efficient and test whether they are consistent

r12=0.7, r13=0.61, r23=0.4                                                   (7 marks)

Q4.a Based on the sample of 90 observations, the following data is available.     (6marks)

Mean values of Y,X1, X2 are 1.29, 0.48 and 12.2 respectively

Fit a regression equation of y on x1 and x2 and make the ANOVA table

F(1,88)=3.94, F(2,87)=3.09, F(1,87)=3.95

b. Solve the following game (4 marks)

B`s Strategies

A’s Strategies              y1        y2

X1                               1          2

X2                               5          6

X3                               2          1

X4                               6          0

Q5.a.What is autocorrelation. How is it corrected?                        (4 marks)

b. Estimate the WLS model based on the following information?        (6 marks)

X         7          17        20        22        15

Y         8          7          6          4          10

V         1          4          5          2          1

Q6 a. Check the identification and rank condition for the second equation   (4 marks)

Y1=4y2 -3×1 +u1

Y2=2y3 +2×3+u2

Y3=2y1-3y2-x2-x3+u3

2. Compute the new output level and labor requirement if the demand changes to 160 and 210 units respectively

A                                    B                     Demand

A           40                        50                      110

B           80                        60                       160

Labour   10                        15

Prof Vipin Saboo can be contacted on 9820779873 for any further clarifications.