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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.
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Replicate the estimations in Table 2 on page 82 of Graddy (1995), but excluding the data of King Whiting.
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#qu3. People educational achievement is affected, among other factors, by the demographic characteristics of their households; the following multiple regression model was estimated
what are the uses of correlation in economics?
DISCUSS THE CENTRAL ECONOMIC PROBLEM FACING THIS GROUP OF SURVIVORS
Define Dummy Variable and write its importance in Regression model.
Which of the following is an example of derived demand?
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