The prediction of dependent variable by the predictors (independent Variable) is called regression.

If the previous lags of a variable is distributed in a model such that it is predicting the […]

Cointegration
 

Before jumping to johansen cointegration test you first need to understand Cointegration.

If two dependent variables are associated with each other, that is, shows the same trend and side […]

Before jumping to SURE or seemingly unrelated regression model, you need to understand following important terms:

If two variables are associated with each other than this is called correlation.
If two […]

Relationship tells the association between two variables. There are four types of relationships:

Deterministic Relationship (DR): Output and the input are always pre-determined and it has the same execution at […]

 
Test for non-stationarity
 

In order to investigate shock or test for non-stationarity by the help of Autocorrelation, you need to follow below steps:

1. Open SPSS 17.0

2. Click on file -> open […]

If two consecutive observations are associated with each other is called autocorrelation. PAC investigates autocorrelation as well as shocks in a data but it cannot tell whether the data series has a permanent or […]

Nonstationary time series
 

First of all it is important to understand that if the shocks or nonstationary time series are temporary then it can be removed by applying either 1st or 2nd diff. The shocks or […]

ADF unit root test using eviews econometrics
 

To check the existence of shocks present in a data by the help of Augmented dickey fuller unit root tests or ADF unit root test using eviews econometrics, you […]

Non-stationary time series or Shocks

 

If time series is dynamic / not still and the observations will be visibly dynamic, then there is shocks present in the series and this will be non-stationary time […]

Time series data has the following properties that needs to be considered:

Time series is always defined with respect to time (annually, monthly, etc.)
Autocorrelation is present most of the time.
There […]

To test for checking normal distribution present in a data, you need to follow below steps:

1. Open SPSS 17.0

2. Click on file -> open -> Data

3. Open the data file “1991 U.S. General Social […]

Types of data characteristics
 

There are three types of data characteristics and they are as follows:

Non parametric (NP)
Non time series (NTS)
Time Series (TS)

If data […]

In order to apply an appropriate statistical analysis, it is important that you know the distribution of data. Suppose you want to analyse your data in order to check its capability. There can be chances […]

 
What is an Outlier?
Any observation that is not within the normal trend is known as an outlier. Outlier can most of the time occur due to human error. Following is a table which provides the data for number […]

In Econometrics and quantitative research & analysis Parametric data can be further divided into four data types also known as types of parametric data, which are as follows:

 
Types of parametric data in […]

 
Data
The set of observations that reflect certain characteristics are known as Data. There are two types of data in regards to parametric vs nonparametric data, which are as follows:

 
Econometrics – P […]