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Problem 1:
(a) Using examples explain the concept of cointegration.(b) Explain the term ‘stationarity' and its importance.(c) Differentiate between stochastic and deterministic trends?
Problem 2:
Write short notes on the following: (a) Unit root tests (b) 3 S's (c) Spurious regression (d) Dummy variable trap (e) CLRM assumptions
Regression Analysis
A firm manufactures and sells a product that has the following demand function: Q = 180 - 4P where P is price, Q is quantity. It also faces the following
Determine the four stationary points of the function Z= 2x 3 +y 3 -18x -12y +50 according to whether they define a maximum, minimum, or saddle point.
how might short and long term goals between a business and the government differ?
estimate the determinants of demand of a firm or several firms within a particular industry or country
You are a logistics consultant for a rapidly growing online retail company. They plan to expand their operations to a new geographical region.Task: Develop a comprehensive logistic
Question: (a) Formulate a VAR with 4 lags and also rewrite it in matrix form, mentioning the limitations of such models. (b) What is the rationale behind introducing lag-dep
A firm has the following inverse demand function: where Q is Quantity and P is Price (a) Find the firm's marginal revenue function. (b) Find the level of out
how to calculate trade potential on eviews?
Following the general methodology used by econometricians as explained in the session for week 1 (eight steps), explain how you would proceed to determine if a good complies with t
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