Introduction to Econometrics (ECO312)

DIPET 1 in Economics - ECNT

Semester: First Semester

Level: 400

Year: 2015

Answers (200 )
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ECOLE NORMALE
SUPERIEURE DE
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TECHNIQUE
First Semester Examination: 2015 - 2016.
Level 300
Econometrics
Time allowed: 2hrs
Instructions: Answer all Questions. The use of statistical tables is allowed.
1. a) What is the difference between a parameter and a statistic?
b) What justifications may be advanced for the inclusion a stochastic term in an
econometric model?
2.
What do you understand by a) a Type 1 error?; b) the, level of significance of a
test? ; c) the unbiasness of an estimator? (2 mks)
3.
Given the following observations for a demand function
Price (X
1
) 2 3 4 77
Price (X
2
) 5 4 3 2
Quantity (Y) 9 5 2 1
a) Write an econometric model for the demand function.
:b)
Estimate the model (give your answers to 2 decimal places).
C) Fill the table below which will facilitate the computation of the coefficient of
determination
for
the
model model (give figures to 2 decimal places).
X
X
2
Y
Y
Y
2
ŷ
Ŷ
2
û
Û
2
2 5 9
3 4 5
4 3 5
7
2
1
Total
d) Compute the adjusted coefficient of determination and interpret it. Test the
significance of the estimates at the 5% level.
e) Test the significance of the estimate at the 5% level
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.
4. A researcher wants to investigate if there is discrimination against women in loan
granting in the credit union. The following data are collected. -
Loan Granted
Yes
No
Male
12
8
Female
6
10
Use the chi-square to test if the allegation is founded at the 5% level. Interpret your
answer (6marks)
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