MECE-001 ECONOMETRIC METHODS in English Solved Assignment 2019-2020
Course Code: MECE-001
Asst. Code: MECE-001/AST/2019-20
Maximum Marks: 100
|Title Name||MECE-001 Solved Assignment 2019-20|
|Service Type||Solved Assignment (Soft copy/PDF)|
|Semester||2019-2020 Course: MA(Economics)|
|Short Name||MECE-001 (ENGLISH)|
|Product||Assignment of MA(Economics) 2019-2020 (IGNOU)|
|Submission Date||For July 2019 session, you need to submit the assignments by March 31, 2020, and for January 2020 session by September 30, 2020 for being eligible to appear in the termend examination. Assignments should be submitted to the Coordinator of your Study Centre. Obtain a receipt from the Study Centre towards submission.|
Note: Answer all the questions. While questions in Section A carry 20 marks each, those in
Section B carry 12 marks each.
1. In the case of a two-variable regression model show that TSS = ESS + RSS. Use
appropriate diagram to explain your result. In this context define the concept of R-squared
and interpret it.
2. a) What is meant by identification problem in a simultaneous equation model?
b) In the following two-equation system check the identification status of both the
𝑌1 =∝1+∝2 𝑌2 + 𝛽1𝑍2 + 𝑢1
𝑌2 = 𝛽2 + 𝛽3𝑌1 + 𝛽4𝑍1 + 𝛽5𝑍2 + 𝑢2
c) Explain how the first equation in the above model can be estimated.
3. What are the limitations of the linear probability model? Explain how the logit model can
be used to overcome these limitations.
4. What are its consequences of heteroscedasticity? How do you detect it? Suggest a method
you would follow to remove the heteroscedasticity problem in a dataset.
5. What are the advantages of dummy variables in a regression model? What is dummyvariable trap? Formulate a regression model with intercept and slope dummies.
6. Suppose the explanatory variable in a regression model is measured with error. What are its
consequences? What steps will you take to solve the problem?
7. Write short notes on the following:
a) Sampling distribution and standard error
b) General Least Squares model
MECE-001, MECE001, MECE-01, MECE-1, MECE 001, MECE 1, MECE-01