ecotrix DSE 2012 help plzz

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ecotrix DSE 2012 help plzz

econ14
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Re: ecotrix DSE 2012 help plzz

Granpa Simpson
This post was updated on .
31) The estimate of the slope parameter for a regression model without the intercept term is given by β= [sum(X*Y)/Sum(X^2)] which is mean corrected, thus option d is wrong.
32) The difference b/w model 1 and model 2 is that in model 2 all the dependent and independent variables have been divided by N which is a variable, if the division would have been done by a parameter value or a constant then the model two models would have been comparable, but in this case since the change in dependent and independent variables is done using a variable hence the models are not comparable.
33) The estimate of slope is given by β=Cov(x,y)/Var(x),
Here put Y'=w1*Y and X'=w2*X,
Thus Cov(X',Y')=w1*w2*Cov(X,Y)
Var(X)=(w2)^2*[Var(X)].
therefore β'=(w1*w2)*Cov(X,Y)/(w2^2)*Var(X)=(w1/w2)*{Cov(X,Y)/Var(X)}=(w1/w2)*β. Hence you can eliminate option b. In a similar manner you can find out each of the estimates and you will observe that only c is correct. Also you can eliminate option d as in this case there is a change in scale and r^2 is independent of that. Or refer to pg 168 of Gujarati.
 "I don't ride side-saddle. I'm as straight as a submarine"
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Re: ecotrix DSE 2012 help plzz

econ14
thanx subhayu
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Re: ecotrix DSE 2012 help plzz

mrittik
In reply to this post by Granpa Simpson
q32. This is clearly showing the Solow Growth Model....it is particularly written in that model it is not fit with normal growth because it is related with per capita growth....understood?
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Re: ecotrix DSE 2012 help plzz

Granpa Simpson
Kulkal Pal..!!!!
 "I don't ride side-saddle. I'm as straight as a submarine"