DISTANCE EDUCATION.

GOMAL UNIVERSITY, DERA ISMAIL KHAN

MSc Economics, 2nd Term.
Econometrics-I assignment
Important note: Do not copy-paste the online material. Neither copy the others assignment. Doing
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Q1. What do you understand about Econometrics? Is it a separate discipline or the explanation
of economic theory? Explain in detail.
Q2. Why mathematical techniques are used in econometrics? Explain wit arguments.
Q3. Elaborate the significance of using statistical techniques in the empirical investigation of
economic theory.
Q4. What do you know about the stochastic error term (Ui)?why it is need to be used in
econometric models? Describe in detail.
Q5. Why we are always interested in the minimization of the squared errors in econometrics?
Explain in detail

Assignment-II ECONOMETRICS-I
MSc Economics, 2nd term (Distance education)
Q1. What is multicollinearity. What possible effects can occur in case of perfect and less than
perfect multicollinearity?
Q2. Describe, in detail, the three tests used for the detection of multicollinearity.
Q3. If the variances of the error terms of the two sub samples are different, what will happen to
the properties of the regression coefficients? Discuss in detail
Q4. If the variances of the error terms of the sub samples are known, what is the estimation
technique used to estimate the regression coefficients? Explain.

Q5. Differentiate between linear model, semi log and double log model. Explain these model with
suitable models.