ECS3706/101/3/2022
Tutorial Letter 101/3/2020
Econometrics
ECS3706
Semesters 1 and 2
Department of Economics
This tutorial letter contains important information
about your module.
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 4
2 PURPOSE OF AND OUTCOMES FOR THE MODULE................................................................ 4
2.1 Purpose ........................................................................................................................................ 4
2.2 Outcomes ..................................................................................................................................... 5
3 LECTURERS AND CONTACT DETAILS ..................................................................................... 5
3.1 Lecturers ....................................................................................................................................... 5
3.2 Department ................................................................................................................................... 6
3.3 University ...................................................................................................................................... 6
4 RESOURCES ............................................................................................................................... 6
4.1 Prescribed books .......................................................................................................................... 6
4.2 Recommended books ................................................................................................................... 7
4.3 Electronic Reserves (e-Reserves)................................................................................................. 7
5 STUDENT SUPPORT SERVICES FOR THE MODULE ............................................................... 7
5.1 Contact with fellow students – study groups .................................................................... 7
5.2 myUnisa........................................................................................................................................ 8
5.3 Tutorial Support Programme ......................................................................................................... 8
6 STUDY PLAN ............................................................................................................................... 8
7 PRACTICAL WORK ................................................................................................................... 12
8 ASSESSMENT ........................................................................................................................... 12
8.1 Assessment plan ........................................................................................................................ 12
8.2 General assignment numbers ..................................................................................................... 14
8.2.1 Unique assignment numbers ...................................................................................................... 15
8.2.2 Due dates for assignments ......................................................................................................... 15
8.3 Submission of assignments ........................................................................................................ 16
8.4 Assignments ............................................................................................................................... 17
FIRST SEMESTER ASSIGNMENTS...................................................................................................... 17
Assignment 1.......................................................................................................................................... 17
Assignment 2.......................................................................................................................................... 27
Assignment 3.......................................................................................................................................... 29
SECOND SEMESTER ASSIGNMENTS................................................................................................. 31
Assignment 1.......................................................................................................................................... 31
Assignment 2.......................................................................................................................................... 41
2
, ECS3706/101/3/2022
Assignment 3.......................................................................................................................................... 43
9 OTHER ASSESSMENT METHODS ........................................................................................... 45
10 EXAMINATION........................................................................................................................... 45
10.1 Assessment of examination ........................................................................................................ 45
Examination period................................................................................................................................. 47
Examination paper ................................................................................................................................. 47
Previous Examination papers ................................................................................................................. 47
3
, 1 INTRODUCTION
Dear Student
We are pleased to welcome you to this Econometrics module and hope that you will find it both
interesting and rewarding. We shall do our best to make your study of this module successful. You will
be well on your way to success if you start studying early in the semester and resolve to do the
assignments properly.
You will receive a number of tutorial letters during the semester. A tutorial letter is our way of
communicating with you about teaching, learning and assessment. Some of this study material may not
have been available when you registered. Study material that was not available when you registered will
be posted to you as soon as possible, but is also available on myUnisa.
2 PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1 Purpose
This course deals with the problem of specifying and estimating the coefficients of a regression equation
(of which the simplest form is: Y=a+bX). Everything in this course is aimed at doing this in the most
efficient way. Our goal is to find the most accurate estimates of the coefficients of the regression
equation, whatever the difficulties which arise.
Three inputs are required to estimate the coefficients of a regression equation.
▪ The first is economic theory. Economic theory is used to specify the nature of the regression
equation. Must we use, for example, the form Y=a+bX1+cX2 or should we use log(Y)
=a+bX1+cX2+dX3? To specify the regression equation correctly requires common sense and a
good grasp of economic theory.
▪ The second input is economic data. In the case of the regression equation Y = a+bX1+cX2 we need
data for variables Y, X1 and X2. Some familiarity of working with economic data and some data
analysis skills are important. Econometrics also requires extensive calculations.
▪ The third input is statistics. Statistics not only provides us with formulas to estimate the coefficients
of the regression equation, but more than this. The sample estimates of a regression equation are
not fully accurate, but are subject to random variation. Statistics is used to evaluate the statistical
significance of coefficient estimates, that is, to determine whether the coefficient estimates are
sufficiently different from zero in the presence of random variation.
Based on these inputs, this module requires a diverse number of skills.
▪ Econometrics uses mathematic notation. A mathematical formula is simply the most direct and
unambiguous way to describe mathematical processes. You must know mathematical notation.
▪ You must also have a good grasp of statistics. Econometric techniques are based on statistical
concepts.
4
Tutorial Letter 101/3/2020
Econometrics
ECS3706
Semesters 1 and 2
Department of Economics
This tutorial letter contains important information
about your module.
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 4
2 PURPOSE OF AND OUTCOMES FOR THE MODULE................................................................ 4
2.1 Purpose ........................................................................................................................................ 4
2.2 Outcomes ..................................................................................................................................... 5
3 LECTURERS AND CONTACT DETAILS ..................................................................................... 5
3.1 Lecturers ....................................................................................................................................... 5
3.2 Department ................................................................................................................................... 6
3.3 University ...................................................................................................................................... 6
4 RESOURCES ............................................................................................................................... 6
4.1 Prescribed books .......................................................................................................................... 6
4.2 Recommended books ................................................................................................................... 7
4.3 Electronic Reserves (e-Reserves)................................................................................................. 7
5 STUDENT SUPPORT SERVICES FOR THE MODULE ............................................................... 7
5.1 Contact with fellow students – study groups .................................................................... 7
5.2 myUnisa........................................................................................................................................ 8
5.3 Tutorial Support Programme ......................................................................................................... 8
6 STUDY PLAN ............................................................................................................................... 8
7 PRACTICAL WORK ................................................................................................................... 12
8 ASSESSMENT ........................................................................................................................... 12
8.1 Assessment plan ........................................................................................................................ 12
8.2 General assignment numbers ..................................................................................................... 14
8.2.1 Unique assignment numbers ...................................................................................................... 15
8.2.2 Due dates for assignments ......................................................................................................... 15
8.3 Submission of assignments ........................................................................................................ 16
8.4 Assignments ............................................................................................................................... 17
FIRST SEMESTER ASSIGNMENTS...................................................................................................... 17
Assignment 1.......................................................................................................................................... 17
Assignment 2.......................................................................................................................................... 27
Assignment 3.......................................................................................................................................... 29
SECOND SEMESTER ASSIGNMENTS................................................................................................. 31
Assignment 1.......................................................................................................................................... 31
Assignment 2.......................................................................................................................................... 41
2
, ECS3706/101/3/2022
Assignment 3.......................................................................................................................................... 43
9 OTHER ASSESSMENT METHODS ........................................................................................... 45
10 EXAMINATION........................................................................................................................... 45
10.1 Assessment of examination ........................................................................................................ 45
Examination period................................................................................................................................. 47
Examination paper ................................................................................................................................. 47
Previous Examination papers ................................................................................................................. 47
3
, 1 INTRODUCTION
Dear Student
We are pleased to welcome you to this Econometrics module and hope that you will find it both
interesting and rewarding. We shall do our best to make your study of this module successful. You will
be well on your way to success if you start studying early in the semester and resolve to do the
assignments properly.
You will receive a number of tutorial letters during the semester. A tutorial letter is our way of
communicating with you about teaching, learning and assessment. Some of this study material may not
have been available when you registered. Study material that was not available when you registered will
be posted to you as soon as possible, but is also available on myUnisa.
2 PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1 Purpose
This course deals with the problem of specifying and estimating the coefficients of a regression equation
(of which the simplest form is: Y=a+bX). Everything in this course is aimed at doing this in the most
efficient way. Our goal is to find the most accurate estimates of the coefficients of the regression
equation, whatever the difficulties which arise.
Three inputs are required to estimate the coefficients of a regression equation.
▪ The first is economic theory. Economic theory is used to specify the nature of the regression
equation. Must we use, for example, the form Y=a+bX1+cX2 or should we use log(Y)
=a+bX1+cX2+dX3? To specify the regression equation correctly requires common sense and a
good grasp of economic theory.
▪ The second input is economic data. In the case of the regression equation Y = a+bX1+cX2 we need
data for variables Y, X1 and X2. Some familiarity of working with economic data and some data
analysis skills are important. Econometrics also requires extensive calculations.
▪ The third input is statistics. Statistics not only provides us with formulas to estimate the coefficients
of the regression equation, but more than this. The sample estimates of a regression equation are
not fully accurate, but are subject to random variation. Statistics is used to evaluate the statistical
significance of coefficient estimates, that is, to determine whether the coefficient estimates are
sufficiently different from zero in the presence of random variation.
Based on these inputs, this module requires a diverse number of skills.
▪ Econometrics uses mathematic notation. A mathematical formula is simply the most direct and
unambiguous way to describe mathematical processes. You must know mathematical notation.
▪ You must also have a good grasp of statistics. Econometric techniques are based on statistical
concepts.
4
