Scribd
Upload
41 views4 pages

BEC-3302-Econometrics-I

Uploaded by

Nyasimi Geoffrey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
41 views4 pages

BEC-3302-Econometrics-I

Uploaded by

Nyasimi Geoffrey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

MERU UNIVERSITY OF SCIENCE AND TECHNOLOGY

P.O. Box 972-60200 – Meru-Kenya.


Tel: +254 (0)799529958, +254 (0)799529959, +254 (0)712524293
Website: www.must.ac.ke Email: [email protected]
University Examinations 2019/2020

THIRD YEAR, SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR


OF SCIENCE IN ECONOMICS AND BACHELOR OF AGRIBUSINESS MANAGEMENT

BEC 3302 –ECONOMETRICS I/ ECONOMETRICS

DATE: DECEMBER 2019 TIME: 2 HOURS

INSTRUCTIONS: Answer question one and any other two questions.

QUESTION ONE (30 MARKS)


a) Given and 25 5 0.5 indicate the following;
(i) Variable(s) (5 Marks)
(ii) Parameters (1 Mark)
(iii) Coefficients (1 Mark)
b) The following data relates the expense of a spy (y) against the spy’s number of
observations (x). use the data below to answer the questions that follow.

x 3 5 7
y 206 226 234

Required;
(i) (1 Mark)
(ii) ̅ (1 Mark)
(iii) (4 Marks)
(iv) (2 Marks)
(v) Standard error of the regression (2 Marks)

Meru University of Science & Technology is ISO 9001:2015 Certified


Foundation of Innovations Page 1
(vi) R2 or Coefficient of Correlation (3 Marks)
(vii) Multiple r or Coefficient of Correlation (2 Marks)
(viii) Standard error of the regression (2 Marks)
(ix) Standard error of the intercept (2 Marks)
(x) Standard error of the slope (2 Marks)
(xi) Slope T-statistic (2 Marks)

QUESTION TWO (20 MARKS)

You are provided with the following ms excel data analysis output.

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.860889
R square 0.74113
Adjusted R
Square 0.648677
Standard Error 97.0198
Observations 20

ANOVA

df SS MS F Significance
F
Regression 5 377278.6 75455.72 8.016253 0.000944
Residual 14 131779.8 9412.842
Total 19 509058.4

Meru University of Science & Technology is ISO 9001:2015 Certified


Foundation of Innovations Page 2
Standard Upper
Coefficients Error t Stat P-value Lower 95% 95%

Intercept 297.5099 224.9937 1.322303 0.207264 -185.054 780.0733

Water intake 1.316824 3.449285 0.381767 0.708366 -6.081116 8.714804

Vitamins -2.00064 4.338717 -0.46111 0.651799 -11.3063 7.30498

Carbohydrates 11.07772 4.300086 2.57616 0.021973 1.854957 20.30049

Noise -7.09321 1.526888 -4.64554 0.000378 -10.3681 -3.81837

Age -31.9795 54.4826 -0.58697 0.566572 -148.833 84.87406

Required;

a) Interpret the results clearly


b) Indicate overall as well as the individual factor significance stating your own but
reasonable evaluation (6 Marks)
c) Highlight the reliability of this model on the basis of size, Errors, correlation etc(6 Marks)
d) Suggest how you can ensure the model assumptions were/are met (8 Marks)

QUESTION THREE (20 MARKS)

a) Explain the difference between population mean, sample mean and conditional mean
giving practical examples. (6 Marks)
b) Why is such differentiation important to an econometrician? (3 Marks)
c) Explain the concept of BUE and BLUE (6 Marks)
d) The following results were obtained from data collection exercises.

x 1 4 9
y 1 ¼ 1/9

1 2 3
4 5 6
y 4 10 18

Meru University of Science & Technology is ISO 9001:2015 Certified


Foundation of Innovations Page 3
Required;

Suggest how you can transform the data to make it suitable for application of OLS(5 Marks)

QUESTION FOUR (20 MARKS)

a) Describe the main steps in regression analysis. (8 Marks)


b) Highlight the main criticism of OLS (6 Marks)
c) Explain briefly the four moments of a populations distribution (6 Marks)

QUESTION FIVE (20 MARKS)

a) Is it null or alternate hypothesis that determines whether to conduct a one tail or two tail
test? Explain (3 Marks)
b) Use the following data below which relates to the monthly earnings of a student on
attachment to ;
Ksh. 20,000.00 21,000.00 24,150.00 26,565.00 26,299.35

a. Stationarise the monthly earnings (4 Marks)


b. Sketch the stationarised monthly earning (5 Marks)
c. Perform a first order autoregression (4 Marks)
d. Suggest a possible null hypothesis (1 Mark)
e. Suggest a possible alternative hypothesis (1 Mark)
f. Interpret the basic results (2 Marks)

Meru University of Science & Technology is ISO 9001:2015 Certified


Foundation of Innovations Page 4

You might also like