Econometrics Problems -

Problem One - Read sections 1.4 to 1.8 of Chapter 1 of "Using Eviews for Principles of Econometrics, Fourth Edition" and answer the following questions. For each answer write no more than a few sentences.

(a) What type of data (of the types of data discussed in the lecture) is being used in example demo.wf1.

(b) What is the difference between a mean and median? 

(c) What is a standard deviation?

(d) What is a sample correlation?

Problem Two - You may want to work through the relevant portions of 1.4 to 1.8 of Chapter 1 of "Using Eviews for Principles of Econometrics, Fourth Edition" using the demo.wf1 work file at home before attempting this. It is not required though.

(a) Download the Eviews work file, food.wf1, from the LMS site. Open it in Eviews.

(b) Download the data definition file food.def from the LMS site. 

(c) Generate a histogram and descriptive statistics for the variable food_exp. Freeze this output and print it out. On your printout state the definition for food_exp (this can be written by hand).

(d) Create a group of both variables (income and food_exp). 

(e) Create a scatter graph using these series. Freeze and print this out. Write one or two sentences discussing what the graph shows.

(f) Generate a set of correlations between food_exp and income. Compare the correlation statistic with the graph generated in part (e).

Attachment:- Assignment Files.rar