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problem1. What do you understand by the term white noise process?

problem2. Make a distinction between exogenous and endogenous variables, using relevant exs.

problem3. What do you understand by simultaneity bias and OLS can employ in its presence?

problem4. Illustrate in details the procedure to estimate.

problem5. Make a recursive model (three-equation system) and describe why OLS can be applied to each equation separately?

problem6. Describe, using exs what you understand by the term instrumental variables.

problem7. Illustrate what a VAR is giving an ex both in the form of equation and matrix. describe its limitations and benefits.

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