# Gauhati University 2007 B.A Economics Statistical Methods and Elementary Econometrics - Question Paper

Monday, 21 January 2013 11:00Web

2007

ECONOMICS

FOURTH PAPER

Full

**Marks:**80

**Time:**three hours

The figures in the margin indicate full marks

for the ques.

(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

(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 distribute

**d.**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 = a+ BX 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 =a + BX + 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. |