BECE-142 Applied Econometrics
Tutor Marked Assignments
Course Code: BECE-142
Assignment Code: Asst /TMA /2024-25


BECE-142 Applied Econometrics
Tutor Marked Assignments
Course Code: BECE-142
Assignment Code: Asst /TMA /2024-25
Total Marks: 100
Assignment 1
Answer the following Descriptive Category questions in about 500 words each. Each question carries
20 marks. Word limit does not apply in case of numerical questions.
1. (a) A research study involves examining the impact of Pradhan Mantri Jan Dhan Yojana initiative on
the economically weaker section in the state of Madhya Pradesh. Suggest an appropriate research
design (in terms of quantitative and qualitative research designs) to undertake such a study. Give
reasons. 10
(b) Discuss the difference between Univariate, Bivariate and Multivariate analysis? 10
2. (a) A study is conducted to find the relationship between city temperature on a single day and the
elevation of the city. A random sample of various cities is presented in the following table: (you may
solve this using Microsoft Excel) 10
Elevation (in feet) 7000 4000 6000 3000 7000 4500 5000
Temperature (⸰ F) 50 60 48 70 55 55 60
(i) Find a regression equation for elevation and city temperature on a given day.
(ii) Find the residuals and create a residual plot.
(iii) Use the regression equation to estimate the city temperature for the city situated at an
elevation of 5500ft.
(iv) Find the correlation coefficient and coefficient of determination and interpret both.
(b) A study shows that there is a correlation between people who are obese and those that have
cancer. Does that mean being obese causes cancer? (6)
(c) A standard error of the estimate is a measure of the accuracy of predictions. Elucidate. (4)
Assignment 2
Answer the following Middle Category questions in about 250 words each. Each question carries 10
marks. 10 3=30
3. Do you think that Akaike information criterion (AIC) is superior to adjustment

criterion in
determining the choice of Model? Give reasons and illustration in support of your answer. (10)
4. What do you mean by the term ‘Logs’ in the context of economic data? Give an account of the
factors contributing to ‘Log effect’. Give illustration in support of your answer. (10)
5. Distinguish between Logit model and Probit model. Explain with illustration the process involved
in estimation of Logit model. (10)
Assignment 3
Answer the following Short Category questions in about 100 words each. Each question carries 6
marks. (6 5=30)
6. What are the various assumptions considered for running a multiple regression model? Are
these assumptions different from the ones considered under simple regression model? (6)
7. What is the difference between random effects approach and fixed effects approach for
estimation of parameters? State the assumptions of fixed effects model. (6)
8. “OLS is appropriate method for estimating the parameters of Binary dependent variable model”-
Comment. (6)
9. What is meant by the problem of identification? Explain the conditions for identification. (6)
10. Make distinction between any three of the following: (6)
(i) Type I and Type II errors.
(ii) Research methodology and research methods.
(iii) Sampling design and statistical design.
(iv) Pooled cross section data and panel data.


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