How was CDS

[Homer Simpson]

When are the results coming out?

[inayah]

Heard twas very easy. I din write. How was it 4 u? Any idea abt xpected cut off and no. Of seats??

[E A Ibrahim]

Results will be out within two weeks. It was the case last year. Number of seats- 20

I have some doubts to be discussed.
(1) Correlation coefficient between x and y = -0.5. Then
(a) x can explain 25% of variation of y
(b) x can explain 50% variation of y.

(2) India's savings rate is
(a) more than its investment rate.
(b) less than its investment rate.

[phelps.phan]

25% explained by x. No idea about saving rate.
The paper was easy. But given that the number of seats are 20 it doesn't make a difference. The cut off is likely to go higher. Part B was almost like comprehension. But since it was descriptive accuracy might matter a lot. Fingers crossed.

[Homer Simpson]

why is it 25% ? could u elaborate? wont it be 50% ?

[phelps.phan]

I remember reading somewhere(I guess Nagar AL), if r is the correlation coefficient, r^2 is the explained variation because of correlation and the rest by the error. So here 0.5^2=0.25; U may verify it.

[Bin]

Did you attempt all the MCQs?

[phelps.phan]

@Bin: nope. I couldn't answer the indian economy qns. I left around 10 qns I guess. What about u?

[E A Ibrahim]

I attempted 21. Left some confusing Indian Economy and Macroeconomics questions. 0.5 negative marking is too high.
What answer you people got for the change in consumer surplus question. I got 12.

[E A Ibrahim]

There was a question based on maximization of utility. I wrote (4,0). What did you write?

[Homer Simpson]

yeah got the same on CS and Utility question. cant remember the others though! i think i attempted about 23-24 MCQs

[Bin]

I left 6.

I don't remember the answer I wrote. I think it might be 12.

[phelps.phan]

tough luck for me:(. What about the RBI rates. Which one is not by RBI?

[E A Ibrahim]

Term Deposit Rates is not regulated by RBI. All others viz Bank Rate and Marginal Standing Facility are controlled by RBI.

[E A Ibrahim]

If price increases, in the case of a giffen good
(a) Income effect is positive, Substitution effect is negative
(b) Income effect -ve and substitution effect +ve
(c) Income effect -ve and substitution effect -ve
(d) Income effect +ve and substitution effect +ve.
I marked (c). Am I correct?

[Bin]

I marked b). Not sure if it's right.

[phelps.phan]

yes Ibrahim, I think c is correct. Substitution effect is always -ve. And for normal good income effect is +ve, since Giffian is an inferior good income effect has to be negative.

[Ashima]

Its a! Use Slutsky Equation!

[Nupur]

Its a) for sure! Substitution effect is negative and income effect is positive. Moreover positive income effect dominates the negative substitution effect so that total price effect is  positive in case of Giffen goods!

[Ashima]

Yes Nupur! I agree! :)