Name of the Programme: MA Economics (Sem.

IV)
Name o[ llte Course: EC- I Group C: Basic t ·co110111etrics

Model Questions (Short and Long Answer Type)

Prepared by
Dr. Benoy Kumar Lal
Associate Professor
Department of Economics, Patna University, Patna
Email ID: benovk11111ar/a/@)1(1!too.i11
Mobile No. I WlrntsApp No. 9608570960/ 9852059001

Model Set of Short and Long Answer Type Questions

(A) Short Answer Type Questions

Module J:
1. Distinguish between Type I & Type II Errors.
2. Ten cartons are taken at random from an automatic filling machine. The mea n
weight of the 10 cartons is 11.8 Kg. and standard deviation is 0.15 Kg. Does the
sample mean differ significantly from the population weight of 12 Kg.?
(Given that.for v = 9, t00s= 2.26)
3. Distinguish between Null and Alternative hypothesis.
4. Write a short note on Chi-square distribution.
5. An automatic machine was designed to pack exactly 5.000 kg. of cdihle oil. A
sample of 100 tins was examined to test the accuracy of the machine. The average
weight was found to be 4.850 kg with Standard Devia tion of 0.025 kg. Is the
machine working properly?
(At 5% level of sig11~fica11ce, the critical value ,~f'Z is I. 96)
6. What is t-distribution? Give the various applications oft-distribution.

Module 2:

7. The mean of a Binomial distribution is 8 and standard deviation is 2. Find n and p.

8. Write a short note on Binomial Distribution.
9. Explain the Arca Properties of Normal Distribution.

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Modulr 3:
Io. l)cscrihc lhe hnsie nss111nplio11s of ordinary leas I squares model.
• H ,. I ' f' t,, .,
I I. llow do you define the term line o lCSt 1 •
12. The following information were ohtah,ed in a sample study-
lX == 56, ..f )' = 40, J;X2 = 524, I'XY = 364. Estimate tlte re,:ression line Y= a + hX .

Modulr 4:
• . .,
13. Whnt do you mean hy lletcrosce< I11st1c1t"Y.
1-t. l)efine Auto-correlation.
1S. Whnt nrc the causes of Auto-correlation' !
16. Write short note 011 D11rhin-Watso11 Test.

Module 5:
17. Describe the use of dummy variahles in econometric analysis.
18. \\1hat is a Distributed Lag Model'?

Module 6:
19. Explain meaning and assumptions of Analysis of Variance (ANOV A).
20. Explain the technique of Analysis of Variance (ANOVA) for data with one-way

classification.

Module 7:
21. What is a Simultaneous Equations Model'?
22. Define Reduced form ltnd Final form Models.
23. Define Endogenous and Pre-determined variables.

(B) Long Answer Type Questions

Module l:
1. What is hypothesis testing? Explain the procedure of hypothesis testing.

2. A certain medicine was given to each of the 5 patients. The results arc given below:

Medicines- I II 111 IV V
-
Weight before medicine 42 39 48 60 41
Weight after medicine 38 42 48 - - - 67 -t(

Test wltetlter there is any clumge in weight after the use of 111edici11e at 5 % /ei·t!I <~l
significance. (to.os = 2. 78 at v = 4)
 3. In a survey of 200 girls of which 40% were intelligent, 30°/t, had uneducated fathers,
while 20% of the unintelligent girls had educated fathers. Do these figures support
the hypothesis that that educated fathers have intelligent girls?
YTahle value of clti-square.for desired degree <!{freedom"' 5% level o.f.\·ig11(fica11 ce is 3./14)
4. Two types of drugs (A and B) were used on 5 and 7 patients for reducing their
weight. The decrease in weight after using the drugs for six months was a s .
follows:

Drug A 10 12 13 II 14
Drug B 8 9 12 14 15 10 I
9
l
Is there a significant difference in the efficacy of the two drugs?
(Given lo.os at v = JO is 2.223)
5. A random sample of size 16 has 53 as mean. The sum of the squares of the
deviations taken from mean is 150. Can this sample be regarded as taken from the
population having 56 as mean? Obtain the result at 95°/4, and 99'1/c, confidence

limits. (Given: For v = 15, t 0 .01 = 2.95 & to.os = 2. 13)

Module 2:
6. Define Normal distribution and describe the main properties of a Normal
distribution.
7. Four coins are tossed at a time 160 times. Number of heads observed at each toss
is recorded and the following results are obtained. Find the expected frequencies.
Also calculate mean of the theoretical distribution.

Number of Heads 0 1 2 3 4
-L--~

Observed frequencies 17 52 54 31 6

8. (a) Define Poisson distribution.

(b) The number of accidents in a year attributed to taxi drivers in a city follows

Poisson distribution with mean 3. Out of 1000 taxi drivers, find the number of
drivers with (i) no accident in a year, (ii) at least 3 accidents in a year.
3
(Given e- = 0.0498).

Module 3:
9. Describe statistical properties of Ordinary Least Square (OLS) estimators.
Or

"Ordinary Least Square Estimators arc BLUE". Elucidate.

3 I P a g c·
 I 0. The following data were collcctccl from 5 different plants in a certain industry.

Production (X) 12 04
--
Total cost (C) 75 44
-'-- ·-
(a) Estimate a linear cost function C = u + PX.
(b) Estimate the total cost for a level of production of 11.
11. Following arc the observations on two variables X and Y:
15 20 25
37 31 29

l>
Estimate the equation V = a +
X

Module 4:
12. Define Heterosccdasticity and describe the consequences or effects of the prohlcm
Heteroscedasticity.
13. Explain the tests to detect the problem Hctcrosccdasticity. (any two methods)
14. Define autocorrelation and describe the causes of au tocorrelation.
15. Explain the methods of detecting the presence of autocorrelation.
16. Consider the model Y, =a+ b X, + u, with the following observations of Yon X
and. test the presence of autocorrelation (at 1 percent level of significance) usin g
Durbin-Watson 'd' statistic. Estimated values of a and h for the model arc 4.8906

q ~r ~
n:~~ i
and 1.0182 respectively.

0 04__,1,-----:-;+-1- :-~-+- ;-+1--:;--+-1- :---,

1

- -
: : 1~
(Fork= I mu/ 11 = JO; <h = 0.604 & ti,,= 1.00/ at I percent /el'el <?{si~nifirnnce.)

Module 5:
17. Define distributed lag and auto-regressive models. Describe the use of lag in
economic analysis.
J 8. What is a dummy variable? Describe the main features of dummy variables.

Module 6:
19. Analyse the following data and test the significance of the difference in the yield of
crop between 'varieties of seeds' and 'fertilizers'.
Per hectare yield (in tons)

4 I P a r'. r'
 - -- -
Variety of seeds
Fertiliz ers ~ - -
A n - --
C

I----
s 3 10
2 6 5 13
- 7
3 8 2
-
4 I 10 13
>---
5 5 0 17
/ Pos (2, 8) = 4.46 am/ Po.1 (8, 4) = f'>.04/

20. Three samples have been obtaine d from normal populat ion with equal va riances.
Test the hy pothesi s that the populat ion mean s arc equal.
/Given Fns = 3.885 at v1 = 2 and v2 ~ /2/
-
I 8 10 7 14 ti
II 7 5 10 9 9
Sample s - ' - -· - ~

111 12 9 13 12 - -
14-

Modul e 7:
21. Define Identifi cation and describe the rules or conditio ns of Identifi cation ..
22. Find reduced form equatio ns of the following model of structu ral equatio ns:
C,= no+ <11 Y,+ u1
I,= Po+ P1 Y,+ P2 Y,_1 + u2
Y 1 = C 1 + 11 + G,
23. Let us conside r the Keynes ian income determi nation model:
C,= ao + a1 Y,+ u,
1, =ho+ b1 v,_, + h2 R, + U2
Y 1 = C 1 + 11 + G,

Identify of the model.

(Herc, C,. 11 & Y1 arc endogen ous va riables. Y,-1. R1 & G 1 arc the exogeno us
variabl es and u 1, u2 arc random variable s.)

~~
Dr. Benoy Kumar Lal
Associate Prt!fe.u or
Department of Economics, Patna U11ii-er.~i~r. Patna
Email ID: he1101'k11111arlal(wrahoo.i11
Mobile No. I WltatsApp No. 960,U7 0960/ 9852059001

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