# Project #94349 - statistics

You can answer each question in about two or three sentences.    Again, put some thought into your answer but this is not a major essay.  Your goal is to show what is going on with the key concepts we have discussed in class so far.

The exam should be done by each individual alone.  There is to be no collaboration or collusions with other students.  Answer in your own words, you are free to consult notes and the text, but do not cut and paste from the web.  As presented in class, the essays may be done with a referral to formulae, but all of the written material in the essay is original, “synthetic” independent work, with no copying of published or unpublished material from the web or any other source.

1.     1. Explain why logarithm transformations are our friends, while doing research in econometrics.

2.    2.  What is the dummy variable trap?

3.     3. What is the Chow test for structural change?

4.     4. Explain the Ramsey RESET test] and explain the intuition of this test as a test of neglected nonlinearity.

5.    5.  Explain why the adjusted R-squared is not a particularly useful diagnostic for evaluating the success of a regression specification and result?

6.    6.  Explain the Box-Cox procedure for evaluating the linear vs. the logarithmic specification of a regression equation.

7.     7. What is a slope dummy or interactive dummy variable?  How does it differ from an intercept dummy?

8.     8. What are the relative merits of the Chow test vs. dummy variables for testing structural change?

9.     9. What are the key econometric issues related to the estimation of VAR models?

10.  10. Explain the Breusch-Godfrey test for detecting autocorrelation or the the Cochrane-Orcutt iterative procedure for eliminating AR(1) autocorrelation

11.    11. Explain the benefits of the Impulse Response function obtained from a VAR model?  Explain how confidence intervals can be obtained from bootstrapping?

12.  12. What are the key problems of using VAR’s for obtaining IR and Variance decomposition results?

 Subject Business Due By (Pacific Time) 11/19/2015 12:00 am
TutorRating
pallavi

Chat Now!

out of 1971 reviews
amosmm

Chat Now!

out of 766 reviews
PhyzKyd

Chat Now!

out of 1164 reviews
rajdeep77

Chat Now!

out of 721 reviews
sctys

Chat Now!

out of 1600 reviews

Chat Now!

out of 770 reviews
topnotcher

Chat Now!

out of 766 reviews
XXXIAO

Chat Now!

out of 680 reviews