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(a) Explain what is meant by the term regression.
(b) Describe the justification for the inclusion of a disturbance term in a regression analysis.
(c) With appropriate examples, discuss the different types of data that are available for empirical analysis.
(d) Show that Cov(a+bX,c+dY)= bdCov(X,Y) where a, b, c, and d are constants.
what is econometrics
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what is the case of autocorrelation
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In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing.
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
a) Explain what is calculated by a correlation coefficient. b) Why do economists commonly find regression a more useful tool than correlation? c) In a sample of 102 men the corre
what is the mathematical origin of durbin watson test for autocorrelation
QM2 Econometric Project As part of the course requirements you have to undertake an econometric evaluation of an economic issue using data that you have gathered either from the ho
As in the model solved initially, the following is the LP model Maximize Z = $42.13*(x 11 + x 12 + x 13 + x 14 ) + $38.47*(x 21 + x 22 + x 23 + x 24 ) + $27.87*(x 31 + x
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