Fundamentals of Econometrics — DU Bachelor of Business Administration (Financial Investment Analysis) Previous Year Question Papers

Investment Analysis) - BBA (FIA) /GE 1. Consider the following estimated regression model obtained from a sample of 25 Y= Household Consumption Expenditure X= Disposable Income (a) Interpret the intercept and slope coefficients of the regression model. (b) Test the hypothesis: State the test used and its assumptions. (c) If disposable income is 40 units, estimate the expected houschold consumption expenditure. (d) Explain the meaning and significance of R2in this regression model. 2. The following multiple regression model was estimated for 80 firms: Y= Sales Revenue X, = Advertising Expenditure X2= Employee Training Expenditure D; = 1 if the firm adopted digital marketing strategy, O otherwise (a) Interpret the estimated coefficients of the model. (b) Why is the dependent variable expressed in logarithmic form? Discuss its advantages. (c) Interpret the dummy variable coefficient and explain its economic meaning. 3. (a) What is the normality assumption in regression analysis? Explain the importance of normality assumption for statistical inference in econometric models. (9) 4. (a) What is autocorrelation? Explain the major causes and consequences of autocorrelation in an econometric model. (9) (b) Explain the Error Component Model (ECM). Discuss its importance in panel data regression analysis. (9) 5. Write short notes on any two of the following: (a) Gauss-Markov Theorem and BLUE Estimators (b) Probit Model and its applications (c) R-and Adjusted R2 A Pent te pale → lere lee lere dy → bib berau (6)