Econometrics UE Past Papers Questions.

Many analysts feel that it is inappropriate to use the ordinary least squares(OLS) methods to model time series data. List three consequences of using OLS methods to model time series data.

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If you are to collect data, what are the three things you have to consider before you decide on the type of dataset you need to collect/use?

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If a consultant gives you a dataset containing information on the total number of accidents per 120 workers at Tanzania Breweries for the year 2014.

1. What type of dataset will this be?
2. What three things might the company be interested in analysing or what kind of information (three) can the company get from such a dataset.

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Briefly define the following

1. Longitudinal data
2. Econometric model
3. Binary variables
4. Autocorrelation
5. Random variable

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One of the assumptions underlying the use of ordinary least squares(OLS) is that errors in an econometric model should not be correlated.

1. What is the technical name for such a problem?
2. Describe the method that is appropriate to test its presence
3. In an event you detect this problem what should be done to make results of an econometric model realistic?
4. There could also be problems when other assumptions are violeted. Mention two other assumptions which should not be violated?
5. Explain the consequences of violating any of the assumptions mentioned in part (d).

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UNSOLVED