NPTEL Introduction to Econometrics : Assignment 1 Solution

1 point

The prime objective of an Econometric analysis is

 Drawing inferences about the population parameters from the sample statistics

 Predicting firms’ behavior of an Economy

 Measuring empirical validity of economic theory using Mathematical & statistical tools

 Observing only household income behavior of an Economy.

 A and C

1 point

ANSWER:-

Economic Data is

 Household Income related Data

 Any data generated from economic decision making

 Firm’s production level data

 GDP Data

 A, C and D

1 point

ANSWER:-

When information/data is collected from same entities over a period of time that is called

 Time-Series data

 Cross-Section data

 Pooled data

 Panel data

 None of the above

1 point

ANSWER:-

Which is not the objective of an Econometric analysis?

 Forecasting.

 Drawing inference about the population parameter from sample statistics.

 Drawing inference about the sample statistics from population parameter.

 Estimating a causal relationship between the dependent and independent variable(s).

 Prediction

1 point

ANSWER-

Which of the following best defines an error term?

 Mean is not equal to 0 and it follows a normal distribution

 It is random and non-stochastic

 It is random and Mean is not equal to 0

 It is non-stochastic and follows normal distribution with 0 mean

 It stochastic and follows a normal distribution with 0 mean

1 point

ANSWER-

In an Economic model  Yi=β1+β2Xi+ui,β1${�}_{�}={�}_1+{�}_2{�}_{�}+{�}_{�},{�}_1$ and β2${�}_2$ basically explain

 Structure of the dependent variable.

 Structure of the error term

 Structure of the sample statistics.

 Structure of the economic model.

 Structure of the population.

1 point

ANSWER-

The term ‘Prediction’ is used in

 Panel Data

 Time Series Data

 Cross-Sectional Data

 Pooled Data

 Both B & C

1 point

ANSWER-

Which of the following is not a step of an econometric analysis?

 Collecting Data

 Hypothesis Testing

 Formulating a mathematical model

 Formulating an economic theory

 Formulating a statistical model.

1 point

ANSWER-

Which among the following is a statistical model?

Yi=β1+β2Xi${�}_{�}={�}_1+{�}_2{�}_{�}$

Yi=β1+β2Xi+ui${�}_{�}={�}_1+{�}_2{�}_{�}+{�}_{�}$

Yi${�}_{�}$^= β1${�}_1$^+β2${�}_2$^Xi+β2${�}_{�}+{�}_2$^X2i${�}_{�}^2$

Yi=β1+β2Xi+β2X2i${�}_{�}={�}_1+{�}_2{�}_{�}+{�}_2{�}_{�}^2$

 None of the above

1 point

ANSWER-

Which is not the desirable property of estimated population parameters?

 Efficiency

 Unbiasedness

 Asymptotic

 Linearity

 Consistency