# MECE-001 ECONOMETRIC METHODS in English Solved Assignment 2019-2020

Course Code: MECE-001

Asst. Code: MECE-001/AST/2019-20

Maximum Marks: 100

Title Name | ## MECE-001 Solved Assignment 2019-20 |

University | IGNOU |

Service Type | Solved Assignment (Soft copy/PDF) |

Course | MA(Economics) |

Language | ENGLISH |

Semester | 2019-2020 Course: MA(Economics) |

Session | 2019-20 |

Short Name | MECE-001 (ENGLISH) |

Assignment Code | MECE-001/AST/2019-20 |

Product | Assignment of MA(Economics) 2019-2020 (IGNOU) |

Submission Date | For July 2019 session, you need to submit the assignments by March 31, 2020, and for January 2020 session by September 30, 2020 for being eligible to appear in the termend examination. Assignments should be submitted to the Coordinator of your Study Centre. Obtain a receipt from the Study Centre towards submission. |

Note: Answer all the questions. While questions in Section A carry 20 marks each, those in

Section B carry 12 marks each.

Section A

1. In the case of a two-variable regression model show that TSS = ESS + RSS. Use

appropriate diagram to explain your result. In this context define the concept of R-squared

and interpret it.

2. a) What is meant by identification problem in a simultaneous equation model?

b) In the following two-equation system check the identification status of both the

equations.

?1 =∝1+∝2 ?2 + ?1?2 + ?1

?2 = ?2 + ?3?1 + ?4?1 + ?5?2 + ?2

c) Explain how the first equation in the above model can be estimated.

Section B

3. What are the limitations of the linear probability model? Explain how the logit model can

be used to overcome these limitations.

4. What are its consequences of heteroscedasticity? How do you detect it? Suggest a method

you would follow to remove the heteroscedasticity problem in a dataset.

5. What are the advantages of dummy variables in a regression model? What is dummyvariable trap? Formulate a regression model with intercept and slope dummies.

6. Suppose the explanatory variable in a regression model is measured with error. What are its

consequences? What steps will you take to solve the problem?

7. Write short notes on the following:

a) Sampling distribution and standard error

b) General Least Squares model

MECE-001, MECE001, MECE-01, MECE-1, MECE 001, MECE 1, MECE-01