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M.E.C.E – 001
ECONOMETRIC METHODS MECE 001
Solved Assignment 2022-23
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Assignment I
Answer the following questions in about 700 words
each.
1. What do you understand by autocorrelation? What are the
consequences of autocorrelation? How do you detect autocorrelation in a data
set? Explain the steps you would follow to remove the problem of
autocorrelation.
2. Consider the multiple regression models in its standard matrix
form. Show that OLS estimators are Best Linear Unbiased Estimators (BLUE).
Assignment - II
Answer the following questions in about 400 words
each.
3. What is meant by heteroscedasticity? Explain one of the
remedial measures for the problem of heteroscedasticity.
4. What is meant by identification problem in a simultaneous
equation system? How to decide whether an equation is identified?
5. What is meant by indirect least squares (ILS) method? Explain
how the following model can be estimated using this method?
Demand function: 𝑄௧ = 𝛼ା𝛼ଵ𝑃௧ + 𝛼ଶ𝑥௧ + 𝑢ଵ௧
Supply function: 𝑄௧ = 𝛽ା𝛽ଵ𝑃௧ + 𝑢ଶ௧
where Q = quantity, P = Price, and X = income.
6. Explain the steps followed in estimation of parameters
through the method of Generalised least squares (GLS).
7. Explain the concept of multicollinearity. What are its
consequences on estimates? What remedial measures would you suggest for problem
of multicollinearity?
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MECE 001 Solved Assignment English Medium 2022-23 The Indira Gandhi National
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Assignment
2022-23.