Question 1:
Why is a disturbance term included in the regression?
Question 2:
What are the properties of OLS estimator?
Question 3:
Mention the major steps involved in the application of Box-Jenkins approach to forecasting.
Question 4:
What do you understand by a stationary time series data and describe in details how a non-stationary times series can be transformed in a stationary one and clearly show the steps and conditions required to retrieve lost information on long run and short run elasticities throughout the differencing process?
Question 5:
Write down the major techniques of economic forecasting.
Question 6:
Comment on two information criteria for model selection