Sa University of Lagos E Department of Economics First Semester Examination ingec-__EON 317: MATHEMATICAL ECONOMICS | Cr cg, ttetion: Answer ANY THREE questions Only. TIME ALLOWED: {Hour 45 Minutes eN the NY THREE questions Only, THEA ~ mn Marke “i pas i a cand and costs ofthe duopolists; Ve the sega tdts Co = 0.5432 Where q= 41+ dz ang ON the aero” functions for each firm and determine the equilibrium profit of each firm (id) Wh, decides i ee imption that each firm assumes th: competitor will not change its output at is, {v1 output so as to maximize profit. (18 Marks) cane ship between the outputs and the marginal revenues of the two firms? (5 Marke) "® lato and cost fumcti BOX 4 3G) Beh ‘clumetions facing a duopolistic industry are given as: oe that firm tig a and C2=0,5Xy more sophisticated firm, determine the profit maximizing output i fi ing that fea aa Under the Stalkeberg model. (15 Marks) for intelli the two firms under a intelligent firm, determine the profit maximizing output and price , talkeberg model. (8 Marks) aft State the necess, t H ary and sufficient ici ii, Given a Cobb-Dougias utite nt CMitions for maximization and minimization problem (4: marks) U=axesye acon Of the form: i) 4, a,,b,,b,, are positive constant. Assume a joint cost function of the form: TG Kat eX8 Ys ---+{ii Where g is a positive constant. And with a profit function of the form: S=TR-TC----- On Determine whether $ is a minimurh or a maximum, (Umarks) ox 4.Let the demand and supply be: OS ‘id al 50. \ wee A iQuestion 3 jonship between Invest pi EE ‘ine result obtainetl is given as Y= 4.534 be 1 estimated are ))-X? SI862In>y eee esOny, A = 245 } aside the rile of thumb, test the statistical significance o| c. (marks) : 3 ive ror term (,) from an OLS, estimate op the impact of money. credit (3C) Was retrieved from a software (hanks to software in esting 2.647 29 [2.181 |-0.758 [1.302 [4.437 [-1.304 | 0.6 ale the Durbia-Watson statistic (a) . ji, In order to/be very accurate, use the D.W decision guide to autocorrélation betweeh MS and BC at 1%. level of significance. If the rho (2) that. causes Autocorrelation of AR(1) process of transform the model ¥, = 4, + ,X, +, such that themew model is | @marts) sTorsigoifican b i, Calcul Question 4 i : Provide a Brief explanation for the questions below using your knowledge ¢ Autocorrelation or Hete ssticity [2 each; extra 1 mark for cla In a theoretical construct for an import dependent country, exchange pro-cyclical; avhat will be the likely consequence of regressing inflati ii. In an atteriapt to examine the ages of students in your class, it was d students’ ages were 43, 50, 38 and 29 while others averaged 16 years. ¥ such on your model?. * ” f iii, Ifthe mistake Funmi makes last two years while she was learning tailoring to this yenr; an alteimpt is made to regress her sales volume onthe numbers OI will be the likely consequence of such using OLS? i iv. Mest rational individuals do not spend the proportion of chan 3es in their ine as income grows. What will happen to models estimated for Such individuals relationship between income and consuinption? Flow ean such problem be reso v. State the steps employed in detecting for Heteroscedasticity using the Goldfeld- approach. vi. For a model (1; = + AX, +4 | Buy )2=o7VX, . Transform the mode! and verify that the new model is heteroscedasticity. vii. What are the possible rules of th 1,, the factor that causes heteroscedasticity takes free: fon humb procedures available in correcting for multicollinearity?Fit the regression line is y = + bx +e pret your results appropriately ribe the ‘menived in running un_OLS regression e theoretical Zo sisting the conclusions on the results SECTION B * i H,=0 (8 Marks) boseR. i ¥ 5: Introductory Econometrics: 2016/2017 CA Test | ‘Time Allowed: 40 Minutes , 1, Stating explicitly all required assumptions, show that the OLS slope coefficient estimator /, is a linear function of the Y,sample values dnd that it is an unbiased estimator of the slope coefficient 2, (15 marks) 2. If God ought to judge you by the nature of the errors or deviations from the right path righteous path, After the summation of the sins or exrors by God, you are told that the summa of all thé erroys you committed amounted to zero or did notamounted to zero. Symbolic: justify this statement in terms of the minimizing and the least-squares criterions (15 marks)ersity of Lagos Department of Economics Second Semester Examination ip 2014/2015 Session KCN 325: INTRODUCTION TO ECONOMETRICS ‘Time allowed: 2 hours —~ Instruction: Answer question one (1) and any other two (2) ‘Question 1 ; (Given y= x+y and A =(x'x)'x'y. Show that: i wemy ( marks) i E(u!) = 0 tracem (S marks) senecracin Piceah Kame (Samaria) n-k () Let X,,X,,----—,X, be a random simple from a Poisson distribution with parameter 1 Thatis: f(x) =" Derive the maximum likelihood estimation of 2 (7 marks) (© Let X,%,, 2X, be a random sample from a Pareto distribution with parameter. That (an) is: fx) -(2\2) Derive the maximum likelihood estimation of @ (8 marks) fo )\ Xo ‘Total =30 marks hestion 2 | (@) State the stages involved in econometric research. 6 Marks) pbx SY yxy rea (AS marks) ney 4 A Total = 20 marks (©), Given that ¥;= Aa + BX, +My» prove that Jy = 3 of Introductory Econometrics (ECN 325) is using data for & sample of 25 business schools that offer degrees in Nigeria to investigate the relationship between the annual salary gain of graduates Y, in thousands of naira per year) and annual tuition fees X\ (measured in thousands of naira per year). fuiatysis of the sample data produces the following sample informatio: ; i pK w yam MeSy 1,034.97, N= 25, ye = 11,432.92 a Sy) = 2,200.67 a Where = X,-2 , y= 7 Use the abowe sample information to answer the following questions. NB: Show calculations . a () Compute OLS estimates of the intercept coefficient A, (©) Compute the OLS estimate of the slope coefficient f, (6) imerpret the slope coefficient estimate you caleulated in (a). ©) Compote the evefficient of determination R? and interpret it accordingly ©) Loterpret the coefficient of determination R? you calculated in (d) Question + {) List five factors responsible for the deviations of observations from the re 140s hes pie Lt seni Aratpael deny ita T — } 7 ¢ University ‘of Lagos » ‘ it Department of Economics (, ECN 49 Assignment : ECN 325: INTRODUCTORY ECONOMETRICS Date: January 6%, 2014 uestigns — ~ Instruction: Answerall Q “1, @) Give a deta description of methodology of econometies (0) Deseribe the Following with examples Time Series Data, Cross-Section Data, Pooted Data and Panel or Longit i?) Coneiional expected value and Unconditional expected value Gli) Lineacity in variables, linearity in parameters, near and now] {iv) Siochistic error term, population regression funetion, sample regression function, parameter, statistic. (©) What type of criteria would you use to evaluate the results ofan estimated relationship? + Which of these criteria tre more important? : A | udinal Data incar regression model correlation to ¢xist between the populations (a) Would you expect a positive, neyalive oF 2010 lin 1h of the following pairs of variables? 1 in different towns nd percentage increase in t inte per yell values of G__* Number of households and ital population © Number of firms going bankrupt per year a Gi) (iii) Years of education and income earned iv) “Total cost of production and Level of output ' k ie Of butter antity of butler demanded ied and price of butter ded and price of margatine OQ iter de © (vt) Quivitity of butter suppl (vii) © Quantity of butter dem: ec wens wiranged in alphabetical ord. : ee ae wabeticul order wer seus uemevemenits in the cluss exercises and the final examinali A a an econome| er from the above information th i nl hat there is any rked relatic eee her marked relationship between whievements eent-confidence interval for r',~ | velatidn coefficient is significantly different fivm ery sal the =, vanblreness\)_ie() 12) (iv) 4, has a normal distribution (v) 6, is consistent i) Best Lincatsession nnitel used te obtain each (State the Gi) What are the problems ; (ii) Obiaiv the expression for determining be and br Jin) * Show hat the sampleesfimation oft and by Le by avd is 0 Dest Linear & .sed Estimator (BLUE) of by and by- 7 of te following properties refully between cach pairs \d consistency (@) Unbiasedness asymptotic efficiency : v) Asymptotic efficiency and BLUE a (ii) Consistertey an Gi) Etficieney and minimum v (¥) Unbiasedness: and minimum MSE * following table includes the price und quantity demanded of the product Fh a six-year period 4.-(a) The 1970 [1971 (000 yards) = vard) 12 Estimate the demand function for the oligopolist’s preduct, assuming this Funetion comment ion the valu © estimated e is (A,andd, i _ ae silues of the estimated coefficients (4, and },) on the basis of economic Estimate the ssi of dma! te prise oF NA Forest the level vice rises to N6. Comitent on your forecast c wm! tes its stalistical significance , ‘ efRARnts of thé demand cme! ncludes the total cost and ihe level of out 1976 | 1977 |_1978 lls, Sr = 132,938 Dr =1.687 + function C= °, +X Forecast the total cost if the quanti: 0 a the MC and tht AC, and plot them rodghly ona ‘use iene regyes:ion to test the hypothesis that hie traditional theory? = Mowe would 300 ‘are non-finear, having U-shape of th