ECO453 Tma Solutions

ECO453

Question: If Trace Statistic > Critical Value, the null hypothesis that there is no co-integration
Answer: reject

Question: Kurtosis shows the ‬of the graph of normal distribution.
Answer: height

Question: Probability value must be significant very close to
Answer: zero

Question: Which of the following is NOT a desirable statistical property of estimators?
Answer: biasedness

Question: What does 21 stands for in a simple model like GDP = ft) + Î21XCR + U.
Answer: A slope coefficient

Question: Making a decision whether to buy soft drinks such as Pepsi, Mirinda, Seven Up or Coke is an example of
Answer: multinomial category

Question: What does U stands for in a simple model like GDP = ft) + Î21XCR + U.
Answer: An error term

Question: J-Bera is a perfect test for normality. If J-B < 5.99 âf We the #o (i.e. There is normality)
Answer: do not reject

Question: What does ft) stands for in a simple model like GDP = ft) + Î21XCR + U.
Answer: An intercept

Question: In respect to the random variable U, the following assumptions apply to any given econometric model that is used in prediction of any economic phenomenon EXCEPT .
Answer: The covariance of ui and uj = 1

Question: What does Î21 stands for in a simple model like GDP = î20 + Î21XCR + U.
Answer: A slope coefficient

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