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(a) Describe all tests that you need to undertake prior to working with time series data.
(b) Consider the following regression result:
Standard Errors: (6.7525) (0.8229) (0.0807)
R-squared = 0.9835; R-bar square = 0.9631 df = 7 F-ratio= 102.40
where Y denotes consumption (in rupees); X1t denotes income (in rupees) and X2t denotes income to the square.
(i) What is the problem with this regression? Explain in details.
(ii) With reference to your answer to the above, how would you detect such problem?
(iii) A researcher wants to model the demand for Nokia mobiles in Mauritius. If you were the researcher, clearly provide a model type along with the expected signs for each of the variables you considered.
suppose only one professor teaches economics at your university, would you say that this prof is a monopolist who can exact any price from students in the form of readings assigned
PROOF THAT E(XU) DIFFERENT FROM ZERO.
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Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and
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Y1=Y21Y2+Bx+U1 Y2=Y21Y1+U2 First equation is demand and second is supply equation,can first equation be identifiable outline the method
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let y denote the number of "heads" that occur when two coins are tossed
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