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

The demand for big macs, illustrate and explain the changing demand gor big...

illustrate and explain the changing demand gor big Mac using the indifference curves and budget line

Use of income elasticity of demand, Use of Income elasticity of demand: ...

Use of Income elasticity of demand: Income elasticity of demand on the other hand, has the following uses (i) Income elasticity of demand shows how the pattern of consumer de

Price adjustments under fixed exchange rate, PRICE ADJUSTMENTS UNDER FIXED ...

PRICE ADJUSTMENTS UNDER FIXED EXCHANGE RATE: In a flexible exchange rate regime trade deficits (surpluses) are automatically corrected by a depreciation (appreciation) of a co

Aspects to promote administrative reforms, Aspects to promote administrativ...

Aspects to promote administrative reforms: Following aspects to promote administrative reforms:  1) A closer focus on results in terms of efficiency and effectiveness, and

Marginal utility and indifference curve, Marginal Utility and Indifference ...

Marginal Utility and Indifference Curve - If the consumption of a product moves along an indifference curve, additional utility derived from the increase in consumption of sing

Types of taxes, Taxes: Compulsory government levies collected to pay for pu...

Taxes: Compulsory government levies collected to pay for public spending. There are numerous types of taxes (corporate, income, wealth, sales, environmentaland payroll taxes); each

Estimating and predicting cost, Estimating and Predicting Cost * Estima...

Estimating and Predicting Cost * Estimates of future costs can be obtained from a cost function, which relates cost of production to level of output and other variables which t

Is there a trade-off between inflation and unemployment, Is there a trade-o...

Is there a trade-off between inflation and unemployment? The Keynesian side posits that policies can indeed be used to stimulate demand - demand-side policies - and those mar

Define injections and withdrawals, Define injections and withdrawals.  ...

Define injections and withdrawals.   "The inflows in circular flow of income are known as injections". Investment, government spending and exports are there in injections "The

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