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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
Can you explain the basic introduction of this methodology?
The firm is considering manufacturing a second product in its factory alongside the first. The demand functions for the two products are: Q d1 =180 - 4P 1 Q d2 =90
Which of the following is an example of derived demand?
Question 1: a) Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations. b) How can we estimate a VAR invol
Plot the appropriate short run and revenue curves ( you may need more than one diagram, and tables) to determine at which price and output levels "Draw Ltd", would achieve:
What is the ADF max test?
What is the rival principle of distribution? What are the impacts of ethics and morals on the rival principles of distribution?
how to regress
demand for tea, Y, are assumed to be affected by income of students, X. A simple linear regres-sion analysis was performed on 20 observations and the results were: Independent vari
Derive marginal benefit of reducing principal balances
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