(a) Distinguish between autocorrelation and heteroscedasticity
and explain their implications for the OLS estimators.
(b) Briefly discuss the alternative
tests, at least two in case, employed to detect the problems of
autocorrelation and heteroscedasticity in the estimated regression
model.
(c) Using the data on consumer prices,
broad money (M2) and Treasury bill rate, as given in question (1),
test the quantity theory of money (QTM) as represented by:
pt=β0+β1mt+β1yt+ut
such that
β0>;β1>0;β2<0;β1=1;β2=-1
Show the estimated regression model, together with all...
Demand function for Greek yogurt is assumed to be: QGY
= B0 + B1 * PGY +
B2 * PNGY + E
QGY : demand quantity of Greek yogurt.
PGY: price of Greek yogurt. PNGY: price of
Non-Greek yogurt.
(1) What signs do you expect on B1 and B2?
Why
B0, B1, B2 are estimated as
follows:
^B0 = −20.05 with standard error
se^B0 = 36.97. ^B1 = −19.50 with
standard error se^B1 = 1.35. ^B2 =
7.56 with standard...
A. Assume b0 = 12.953, and b1 = -2.5. For x = 25, predict y.
Round to 3 digits.
B. if x is increased by 10 units, how much does y-hat change?
Round to 3 digits.
Use the points to answer the following:
x
y
12
17
21
15
28
22
8
19
20
24
C. How much correlation is there between x and y? Round to four
decimals and use leading zeros if necessary.
D. How much of the...
Under what conditions does the Gauss-Markov Theorem guarantee
the OLS estimators to be BLUE? State such conditions and explain
each of them in your words. What does it mean for the OLS
estimators to be BLUE? Explain
With an Arduino Uno:
Using 2 external buttons b0 and b1 to represent ‘0’ and ‘1’,
design a sequence detector to detect a pattern “1101”. An LED
lights up once, when the sequence “1101” occurs.