MECE-001 ECONOMETRIC METHODS in English Solved Assignment 2022-2023

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Tutor Marked Assignment (TMA)
Course Code: MECE-001
Asst. Code: MECE-001/AST/2022-23
Maximum Marks: 100

Title Name

MECE-001 Solved Assignment 2022-2023

University IGNOU
Service Type Solved Assignment (Soft copy/PDF)
Course MA(ECONOMICS) MEC
Language ENGLISH
Semester 2022-2023 Course: MA(ECONOMICS) MEC
Session For July 2022 and January 2023 Sessions
Short Name MECE-001
Assignment Code MECE-001/AST/2022-23
Product Assignment of MA(ECONOMICS) 2022-2023 (IGNOU)
Submission Date For July session, you need to submit the assignments by March 31, and for
January session by September 30 for being eligible to appear in the term end examination.Assignments should be submitted to the Coordinator of your Study Centre. Obtain a receipt from the Study Centre towards submission.

 

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Note: Answer all the questions.
SECTION A
Answer the following questions in about 700 words each. The word limits do not apply in case of
numerical questions. Each question carries 20 marks.
1. What do you understand by autocorrelation? What are the consequences of autocorrelation? How
do you detect autocorrelation in a data set? Explain the steps you would follow to remove the
problem of autocorrelation.
2. Consider the multiple regression models in its standard matrix form. Show that OLS estimators are
Best Linear Unbiased Estimators (BLUE).

SECTION B
Answer the following questions in about 400 words each. Each question carries 12 marks.
3. What is meant by heteroscedasticity? Explain one of the remedial measures for the problem of
heteroscedasticity.
4. What is meant by identification problem in a simultaneous equation system? How to decide
whether an equation is identified?
5. What is meant by indirect least squares (ILS) method? Explain how the following model can be
estimated using this method?
Demand function: 𝑄௧ = 𝛼଴ା𝛼ଵ𝑃௧ + 𝛼ଶ𝑥௧ + 𝑢ଵ௧
Supply function: 𝑄௧ = 𝛽଴ା𝛽ଵ𝑃௧ + 𝑢ଶ௧

where Q = quantity, P = Price, and X = income.
6. Explain the steps followed in estimation of parameters through the method of Generalised least
squares (GLS).
7. Explain the concept of multicollinearity. What are its consequences on estimates? What remedial
measures would you suggest for problem of multicollinearity?

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