Introduction to Econometrics (ECO312)
DIPET 1 in Economics - ECNT
Semester: First Semester
Level: 400
Year: 2016
First Semester Examination: 2015 — 2016
Level 300
Econometric
Time allowed: 2hrs
Instructions: Answer all questions. The use of statistical table is allowed
1. a) What is the differe nce betwee n a p arame ter and a statistic?
b) What justifications may be advan ced for the inclusion of a stochastic term in an
econome tric model? (2 mks)
2.
What do you understand by a) a Type I error?; b) the level of significance of a test? ; c)
the unbiasness of an estimator? (2 mks)
3. Given the followin g observations for a demand f u n c tion
Price (X
1
)
2 3 4 7
Income (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) Compu te t he adju sted coe f f icie nt of d e te r min atio n and inte rp r e t i t.
e) Test the significance of the estimates at the 5% level. (10 mks)
4. A re searche r wants to investigate if there is d iscrimi n ation against women in loan granting
in the cred it u n ion. The follow i ng data are collected
Loan Granted
YES NO
Male
12
8
Female
6
10
Use the chi-square to test if this allegation is fo unded at the 5% level. Interpret your answer. (6 mks)
Merry Christmas and Happy New Year in Advance!!!
REPUBLIC OF CAMEROON
Peace — Work — Fatherland
THE UNIVERSITY OF BAMENDA
HIGHER TECHNICAL TEACHER TRAINING
COLLEGE
DEPARTMENT OF ECONOMIC SCIENCES
P.O. BOX 39, BAMBILI
Tel : (+237) 33 15 64 19
REPUBLIQUE DU CAMEROUN
Paix — Travail — Patrie
UNIVERSITE DE BAMENDA
ECOLE NORMALE SUPERIEURE DE
L'ENSEIGNEMENT TECHNIQUE
DEPARTEMENT DES SCIENCES
ECONOMIQUES
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