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Probelm:
(a) Differentiate between homoscedasticity and heteroscedasticity.
(b) Outline the reasons why the variances of disturbance term may vary.
(c) Given the 3 observations (1,4) , (2,6) and (3,7), with the true model being
Y = β1 + β2 X + u, solve the fitted line.
What is the expected value and variance of y = 3x+2 knowing that E(X) = 8 and var(X) = 4.
visit to a village panchayat for agrilculture based project
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
Paul's utility function is u(x, y) = xy 2 . Let unit prices be given by Px = 6 cents, Py = 2 cents, and assume that Paul's budget is the same as Peter's from the previous problem
given the formula for f statistic prove that by using the f statistic you can derive this formula
what is the mathematical origin of durbin watson test for autocorrelation
Let W be a random variable such that Supp (W) = {2, -1, 0, 1, 2 } and What is p? Define U = W 2 . What is Supp (U) and fU (u) = Pr [U = u] for u ∈ Supp (U)? Compute E [W] a
#what is the central problems of economics
Consider a Simple Linear Regression Model (SLRM) of the form y= a1+a2X+e where e ~ N(0,σ 2 )(Use the assumptions outlined in our class and available for review in the lecture note
(b) Suppose that the initial conditions are as follows: y0 = 0 and et = 0 for t= 0. Impose the initial conditions in order to find the general solution.
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