ECON3067 Semester 3 2022/23

Zoom Discussion Questions June 5, 2023

Units 1

1. Provide (and explain) advantages and disadvantages of the following:

(a) time series data;
(b) cross-sectional data;
(c) panel data.
2. What are three violations that can occur with random sampling?
3. Explain the sample properties of estimators?

4. List and explain why OLS method is inappropriate for the estimation of an equation in a
system of simultaneous equations.

5. A simple equation is Y = β 0 + β 1x + u. State the following:

a. the explanatory variable(s).

b. the explained variable(s).

c. the disturbance term.

d. why is the disturbance term essential to a model?

e. Why not introduce the disturbance terms in the model rather than lumping them
together?

6. What is regression analysis?

RA is concerned with describing and evaluating a given variable(s) which is called a dependent variable
and one or more independent variables (explanatory variables). The movement that caused the movements
in other variables are the independent variables and the variable we are trying to explain called the
dependent variable (explained variable).
7. What is the difference between Regression and Correlation?

Unit 2 Questions
Define the following.

1.a. The ˆ’s (hat symbols) and give an example.

1.b. Residual (𝝁𝒕 ).
1.c. Population Regression Function
1.d. Sample
1.e. Estimator
1.f. Estimates

2. Write the fitted regression equation line for 𝒀𝒕 for a given fixed value of X for observation t
multiply by its slope coefficient and fitted with an intercept coefficient.

̂ 𝟎 is an unbiased estimator of 𝜷𝟎 .
3.a. Show that 𝜷
̂ 𝟏 is a linear estimator.
3.b. Show that 𝜷

1.