Econometrics UE Past Papers Questions.

Under what condition is   true?

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1. Describe the Linear Probability Model (LPM) and give an example of its use in agriculture or any other sector of the economy.
2. Describe the difference between the ordinary least squares (OLS) model and LPM
3. In a logit model what is the interpretation of a slope coefficient for a particular variable in the model.

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1. Correlation and regression analysis are closely related concepts. Under what circumstance will correlation analysis be as good as regression analysis?.
2. A resercher has a large number of data pairs(age,height) of cattle from birth to 10 years. She computes a correlation coefficient ():

1. State the null hypothesis for testing whether the correlation coefficient for this relationship is statistically different from zero.
2. What is the prior expectation about the sign of the computed correlation coefficient and why?
3. What results are expected from the test specified in (i) above if all cattle in the sample have no abnormalities and why?
4. What would you suggest be a major problem with this approach?

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1. What is panel data?
2. What is cross-sectional data?
3. What is time series data?
4. What are the advantages of using panel over cross-sectional and time series data?

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1. What is the difference between fixed and random effect estimation as applied to panel data analysis?
2. Which test is the general accepted test for choosing between using a Fixed Effect (FE) or Random effect (RE) Model?
3. In a panel dataset, if all the cross-sectional units have the same number of time series observation, the panel dataset is considered to be……..

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