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Problem 1:
(a) Using examples explain the concept of cointegration.(b) Explain the term ‘stationarity' and its importance.(c) Differentiate between stochastic and deterministic trends?
Problem 2:
Write short notes on the following: (a) Unit root tests (b) 3 S's (c) Spurious regression (d) Dummy variable trap (e) CLRM assumptions
how can the factors of production be occupationally mobile
Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales
concept of supply
Your firm will produce widgets for the next 10 years (starting at t=1). Annual revenue from selling widgets is $20,000. Production requires an initial outlay (at t=0) for machin
A brief summary of the procedure of maximum likelihood.
An electron follows a helical path in a uniform magnetic field of magnitude 0.422T. The pitch of the path is 6.81 mm, and the magnitude force on the electron is 1.59 x 10 -15 N. W
goldfield quandt test solution
Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) = 0.
The textbook states, “Prejudice by itself did not create American slavery.” Examine the forces and events that led to slavery in North America, and the role that racial prejudice p
Problem: (a) Differentiate between linear and log-linear model. (b) Distinguish between type I and type II errors. (c) (i) A bulb manufacturer claims that its bulbs last
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