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AEM702S - APPLIED ECONOMETRIC MODELLING - 2ND OPP - JANUARY 2024 |
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nAm I BIA UnlVERSITY
OF SCIEnCE AnDTECHnOLOGY
FacultyofHealth,Natural
ResourcesandApplied
Sciences
Schoolof NaturalandApplied
Sciences
Departmentof Mathematics,
StatisticsandActuarialScience
13JacksonKaujeuaStreet
PrivateBag 13388
Windhoek
NAMIBIA
T: •264 61207 2913
E: msas@nust.na
W: 'INww.nustna
QUALIFICATION : BACHELOR of SCIENCE IN APPLIED MATHEMATICS AND STATISTICS
QUALIFICATION CODE: 07BSAM
LEVEL:7
COURSE:APPLIED ECONOMETRIC MODELLING
COURSECODE: AEM 702S
DATE: January 2024
SESSION: 1
DURATION: 3 HOURS
MARKS: 100
SECOND OPPORTUNITY/ SUPPLEMENTARY: EXAMINATION QUESTION PAPER
EXAMINER: Prof Rakesh Kumar
MODERATOR: Dr Isak Neema
INSTRUCTIONS:
1. Answer all questions on the separate answer sheet.
2. Please write neatly and legibly.
3. Do not use the left side margin of the exam paper. This is reserved for the examiner.
4. No books, notes and other additional aids are allowed.
5. Write all answers clearly with their respective question numbers.
PERMISSIBLE MATERIALS:
l. Non-Programmable Calculator
ATTACHEMENTS
None
This paper consists of 3 pages including this front page
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Question 1. [Total Marks 20]
(a) Discussthe method of indirect least squares.
(5 marks)
(b) Discuss the estimation of regression parameters in presence of perfect multicollinearity.
(10 marks)
(c) What is the role of adjusted R2 in regression model building?
(5 marks)
Question 2. [Total Marks: 20]
(a) Discuss the method of generalized least squares in handling the problem of
heteroscedasticity.
{10 marks)
(b) Discuss the Koyck's approach to distributed lag models?
(10 marks)
Question 3. [Total Marks: 20]
An investigator is interested in knowing whether the monthly family expenditure is related
to the monthly family income. A sample of 10 families is selected at random, the detail is
given below.
Family
70 65
90
95
110 115 120 140 155 150
consumption
expenditure
(USD): Y
Family
income
{USD): X
80 100 120 140 160 180 200 220 240 260
(a)Find the regression equation of monthly family consumption expenditure on the monthly
family income. Predict the monthly family expenditure for monthly family income of USO300.
(15 marks)
(b)What is the estimated change in the average monthly family expenditure with one unit
change in the monthly family income?
(2 marks)
(c) How much variation in the monthly family consumption expenditure is explained by the
monthly family income.
(3 marks)
Question 4. [Total Marks: 20]
State and prove Gauss-Markov theorem.
(20 marks)
Applied Econometric Modelling (AEM 702S)
2nd Opportunity- January 2024
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Question 5. [Total Marks: 20]
(a) From the following model obtain the reduced-form equations:
(10 marks)
(c) Using matrix approach prove that in a multiple regression model, the OLSestimators are
linear and unbiased.
(10 marks)
................................................................... End of Question Paper ............................................... .
Applied Econometric Modelling (AEM 702S)
2nd Opportunity- January 2024
3