Demand is basically the requirement or the need of the customers who have the buying power to purchase certain goods. Whereas, supply is related to the manufacturer or producer of those goods / services in […]

Due to change in the demand and supply of the product, there is also change in its quantity and price. This relationship can be best analysed through the following four scenarios:

The change in the demand […]

Law of demand:

According to the law of demand, when price of good is increased, then the quantity demand automatically decreases, provided we have ceteris paribus or caeteris paribus which means that […]

 
Concept of volatility
 

If the water changes to gas then this is called volatility. Similarly, if data has random stages such as Brownian motion than this also means that data is volatile.

The variation […]

Autoregressive distributed lag model
 

The above model contains ARDL (autoregressive distributed lag model) in addition to VAR / vector autoregression because of both variable, independent and […]

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 […]