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Question:
(a) Why is a disturbance term included in a regression?
(b) What are the properties of an OLS estimator?
(c) Outline the major steps involved in the application of the Box-Jenkins approach to forecasting.
(d) What do you understand by a stationary time series data and explain in details how a non-stationary times series can be transformed into a stationary one and clearly show the steps and conditions needed to retrieve lost information on longrun and short run elasticities during the differencing process?
(e) What are the major methods of economic forecasting?
(f) Comment on two information criteria for model selection
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