Gauhati University 2007 M.A Economics Dept., Previous , , Fourth - Question Paper

2007
ECONOMICS
FOURTH PAPER
Full Marks: 80
Time: three hours
The figures in the margin indicate full marks
for the ques.
Write the answers to the 2 Halves in separate books
FIRST HALF
(Statistical Methods)
1. ans the following: 2×4=8
a) describe Bayes' theorem.
b) What is meant by sampling distribution of a statistic?
c) What do you mean by Splicing of Index Numbers?
d) Distinguish ranging from kind I and kind II errors in testing hypotheses.
2. ans any 2 of the following: 6×2=12
a) elaborate the characteristics of a good estimator?
b) describe conditional probability. An um contains seven white and five black balls. Two
balls are drawn at random 1 after the other without replacement. obtain the
probability that both balls drawn are black.
c) What is binomial distribution? elaborate its properties?
3. ans any 2 of the following: 10×2=20
a) Distinguish ranging from Laspeyres' and Paasche's Index Numbers. Show how
Fisher's Index Number is derived from these two. 3+3+4= 10
b) What is meant by normal distribution? elaborate its properties? 2+8=10
c) elaborate the properties of t-distribution? define the major applications of tdistribution.
7+3=10
SECOND HALF
(Elementary Econometrics)
4. ans the following: 2×4=8
a) In a situation involving 3 variables X, Y and Z, what is the partial correlation
ranging from X and Y?
b) Under standard assumptions the OLS estimators of regression coefficients are
normally distributed. Yet the standard normal variate is usually not used as the
statistic for testing hypotheses about regression coefficients. Why is that so?
c) How are consumer goods categorised into normal goods and inferior goods?
d) How is the Gini coefficient related to the Lorenz curve?
5. ans any 3 of the following: 4×3=12
a) Why is an formula like Y =
+ X not suitable for econometric study? Suitably
replace the formula to adapt it for econometric use.
b) explain the limitations of the moving avg. method of estimating pattern in a
time series.
c) discuss the merits and demerits of the subsequent formulation of the Engel curve
InY = a + b ln X
where Y is household expenditure on a consumer good and X is
household income.
d) Outline the essence of the multicollinearity issue.
e) State and discuss Pareto's legal regulations of income distribution.
6. ans any 2 of the following: 10×2=20
a) Illustrate the use of the variate difference method to determine the degree of a
polynomial to be fitted to a time series. 10
b) Derive the OLS estimators of the parameters of the regression model
Y =
+ X + u
Show that under standard assumptions, the OLS estimator of f3 is the best linear
unbiased estimator. 4+6=10
c) Show how the OLS estimate of the 2 variable linear regression model can be
used to generate an internal prediction. 10
d) Outline the features of the log-normal distribution and explain its usefulness for
representing distribution of income in a society. 10

Earning:   Approval pending.