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Take Home Assignment - 2

This document outlines the instructions for a take-home assignment in applied econometrics. Students are asked to: 1. Extend their previous individual assignment by including at least three independent variables that have a theoretical relationship to the dependent variable. 2. Collect data for each variable pertaining to the Indian context, with a minimum of 30 observations for each variable. 3. Estimate a multiple linear regression model and interpret the results, testing hypotheses about coefficients and interpreting the tests. Also test for and address multicollinearity, heteroscedasticity, autocorrelation, and omitted variables. 4. Submit the assignment before the August 25th deadline via email.

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Ankit Kumar Singh
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55 views1 page

Take Home Assignment - 2

This document outlines the instructions for a take-home assignment in applied econometrics. Students are asked to: 1. Extend their previous individual assignment by including at least three independent variables that have a theoretical relationship to the dependent variable. 2. Collect data for each variable pertaining to the Indian context, with a minimum of 30 observations for each variable. 3. Estimate a multiple linear regression model and interpret the results, testing hypotheses about coefficients and interpreting the tests. Also test for and address multicollinearity, heteroscedasticity, autocorrelation, and omitted variables. 4. Submit the assignment before the August 25th deadline via email.

Uploaded by

Ankit Kumar Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Attention to BM2019-21 Batch of Applied Econometrics for Managers

Take Home Assignment Part-II


Weight: 15 %

Step 1:
As a part of the course and concurrent Assignment in Econometrics, extend the first assignment
(assignment-1) by including some more variables which you think have a sound theoretical
relationship. The number of independent variables should not be less than three (more is
preferable).

Step 2:
Collect the data pertaining to each variable relating to Indian context. The number of
observation for each data set should not be less than 30 observations. No two students will
select the same variables.

Step 3:
Calculate the following thing and interpret the result with sound theoretical logic.

a) Estimate a multiple linear regression model and interpret the result. Formulate and tests
the hypothesis about the coefficients applying ‘t’ and ‘F’ test based on your theory and
interpret them.
b) Test the Multicollinearity problem with a suitable method. Solve the problem of
Multicollinearity if so, by any one of the method which you thing suitable for your
example?
c) Applying a suitable method test the Heteroscedasticity problem. Solve the problem of
heteroscedasticity, if so, by any one of the method which you thing suitable for your
example?
d) Tests whether autocorrelation is present or not in your regression? Solve the problem of
autocorrelation, if so, by any one of the method which you thing suitable for your example?
e) Perform the redundant variable or omitted variable tests to test about the inclusion or
exclusion of a variable into the model.

Please note

1. All the estimation has to be done applying any software of your choice.

1. The Last date of submission is Aug 25, 2020 or before 4:30 p.m. Mail me the soft copy in
my mail id [email protected] email id. This will not be further extended.

2. As part of the course you need to do a concurrent assignment in Econometrics


*****

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