Question: Question One Define the following terms a) Unbiasedness b) Efficiency of an estimator c) Consistency of an estimator d) Stationarity e) Heteroskedasticity f) Cointegration Question

Question One Define the following terms a) Unbiasedness b) Efficiency of an estimator c) Consistency of an estimator d) Stationarity e) Heteroskedasticity f) Cointegration Question Two a) Explain the term Serial Correlation b) What are the consequences of the presence of serial correlation? c) How do you test for the presence of serial correlation using the Durbin-Watson Statistics, state all the relevant assumptions of this test? Question Three a) Explain the term multicollinearity b) What are the consequences of ignoring the problem? c) How do you detect the presence of serial correlation? d) State 3 ways of correcting the problem Question Four a) Explain the following methods of testing the presence of heteroskedasticity i. Goldfield and Quandt test ii. White Test iii. Spearman's Rank Correlation Test b) What are the consequences of heteroskedasticity? c) State and explain two ways of correcting heteroskedasticity

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