Explain the term heteroscedasticity, Microeconomics

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.

Posted Date: 10/23/2013 5:27:36 AM | Location : United States

Related Discussions:- Explain the term heteroscedasticity, Assignment Help, Ask Question on Explain the term heteroscedasticity, Get Answer, Expert's Help, Explain the term heteroscedasticity Discussions

Write discussion on Explain the term heteroscedasticity
Your posts are moderated
Related Questions

National Budget: A National Budget is a document showing estimates of expected government revenue and intended expenditure for the coming financial year. It usually consist of

a) Consider the following flows (in thousand of people) between the various labour market states in a particular month: UE = 240 000; UNLF = 180 000; EU = 190 000; NLFU = 220 000

to what extent does Marginal revenue productivity theory explain wage determination in Zimbabwe

Theories and Models ?? Microeconomic Analysis             – Theories are taken in use to describe the observed phenomena in terms of a set of essential  rules and

In the short run, the size of the plant is fixed whereas in the long run a firm can adjust its plant size. One of the choices in the long run will be the short run plant size. That