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QB6

This document is a question paper for the Fundamentals of Econometrics course, part of the Bachelor of Business Administration program. It includes instructions for candidates, a regression analysis task, and various questions covering regression concepts, model selection, and statistical methods. Students are required to attempt any 5 questions from the provided topics within a 3-hour timeframe for a total of 75 marks.

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8 views4 pages

QB6

This document is a question paper for the Fundamentals of Econometrics course, part of the Bachelor of Business Administration program. It includes instructions for candidates, a regression analysis task, and various questions covering regression concepts, model selection, and statistical methods. Students are required to attempt any 5 questions from the provided topics within a 3-hour timeframe for a total of 75 marks.

Uploaded by

riya.x.sing
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

[This question paper contains 3 printed pages.

Your Roll No……………………………………….

Sr. No. of Question Paper :

Unique Paper Code : 61015920

Name of Paper : Fundamentals of Econometrics

Name of the Course : Bachelor of Business Administration (Financial

Investment Analysis) - BBA(FIA), CBCS LOCF

(admissions of 2019, 2020 & 2021 only)

Semester : IV

Duration : 3 Hours

Maximum Marks : 75

Instructions for Candidates

 Write your roll no immediately on receipt of this question paper.


 All questions carry equal marks.
 Attempt any 5 questions.
1. Based on the following regression output, answer the given questions:

Linear Regression Results:

Dependent Variable: Sales

Independent Variables: Advertising, Price, Income

==============================================================================

Coef. Std.Err. t P>|t| [0.025 0.975]

------------------------------------------------------------------------------

Intercept 10.123 1.234 8.202 0.000 7.856 12.390

Advertising 0.548 0.045 12.176 0.000 0.460 0.636

Price -1.234 0.097 -12.765 0.000 -1.426 -1.042

Income 0.789 0.032 24.627 0.000 0.726 0.852

==============================================================================
a) Interpret the coefficient for the variable "Advertising", "Price" and "Income" in the
regression output. What does the coefficient value indicate about the relationship
between variables and sales? Is the relationship statistically significant?
b) What is the significance of the intercept term in the regression model? How would
you interpret its coefficient value?
c) Based on the regression output, what can you infer about the overall fit of the
regression model? Are the independent variables collectively significant in explaining
the variation in sales?
2. a) Discuss the concept of functional forms in regression models. What are the
implications of choosing different functional forms, such as linear, logarithmic, or
polynomial, on the interpretation and prediction capabilities of the regression model?

2. b) How does the principle of Best Linear Unbiased Estimation (BLUE) relate to least
squares estimation? Discuss the properties of estimators in the context of the regression
model

3. a) Explain how goodness of fit measures can help assess the overall performance of
regression models and guide model selection decisions.

3. b) Discuss diagnostic tests for detecting heteroscedasticity in regression models.

4. a) In a longitudinal study on employee productivity, explain when you would opt for the
fixed effects least squares dummy variable (LSDV) model and discuss its limitations in
capturing unobserved heterogeneity.

4. b) In a study on the determinants of firm profitability, discuss the differences between the
fixed effects model and the random effects model and under what circumstances each would
be preferred.

5. a) Suppose you are investigating the effect of educational attainment on income levels
across different regions. Discuss how you would employ slope dummy variables to capture
variations in the slope of the income-education relationship among regions.

5. b) You are analyzing the likelihood of a customer purchasing a product based on


demographic factors. Explain how you would use logit and probit models to estimate the
probability of purchase, considering binary response data.

6. Write short note on any two:


a) Multicollinearity
b) Autocorrelation
c) Least Square Estimation
d) Hypothesis Testing

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