Explain the term heteroscedasticity, Microeconomics

Assignment Help:

Question 1:

(a) Using examples, explain the difference between time-series, cross-sectional, and panel data.

(b) Formulate a simple linear equation, and carefully explain the following terms:

(i) Explanatory variable
(ii) Dependent variable
(iii) R-square
(iv) P-value

(c) Briefly explain the assumptions underlying the Classical Regression Model.

Question 2:

(a) Explain the term heteroscedasticity, emphasising on the problems that it represents for Ordinary Least Square (OLS) estimation techniques.

(b) Explain how the Generalised Least Square (GLS) can be used to correct for the problem of heteroscedasticity.


Related Discussions:- Explain the term heteroscedasticity

Monopoly, causes for emergency of monopoly

causes for emergency of monopoly

Assigment, What is the theory of second best? Prove the theorem with the he...

What is the theory of second best? Prove the theorem with the help of diagram.

Inflation and inflation types, Inflation Types Inflation is generally c...

Inflation Types Inflation is generally classified on the basis of its rate and causes, while rate-based classification of inflation refers to the severity of inflation or how h

Perfect competition, When should a firm shut down production in the short r...

When should a firm shut down production in the short run?

Comparative advantage, Comparative Advantage:A theory of international trad...

Comparative Advantage:A theory of international trade which originated with David Ricardo in early 19th Century and is maintained (in revised form) within neoclassical economics. T

Economics of exhaustible resources, Normal 0 false false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Problem Solving, Regardless of the market structure, oligopolist and the mo...

Regardless of the market structure, oligopolist and the monopolist maximize their TR when MR=0. Do you agree?

Marginal product theory, Marginal Product Theory a.    What is the MC ...

Marginal Product Theory a.    What is the MC of output in the short-run? b.    What is the MC of labor (employed)? c.    What is the short-run profit-maximizing decision

Consumer''s equilibrium, using necessary and sufficient conditions explain ...

using necessary and sufficient conditions explain consumer equilibrium diagrammatically as well as mathematically

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd