Question
Non-spherical errors are related to
Solution
If the spherical errors assumption fails to hold, there are two problems with OLS. There is a better estimator available—one that is still unbiased, but is less sensitive to sampling variation (i.e., has lower standard errors). The formula we use to estimate the standard errors of OLS is invalid. Our confidence intervals and hypothesis tests will (usually) be overconfident, overstating the precision of our results. Spherical errors fails when we have either or both of: Heteroskedasticity and Autocorrelation
Raju invests a certain amount at an annual simple interest rate of 6% for 2 years. The total amount he receives after this period is then reinvested at ...
Rs. (n + 500) invested on simple interest amounts to Rs. 4,500 and Rs. 5,100 in 5 years and 6 years, respectively. Find the value of 'n'.
What will be the net CI on Rs. 8000 for 4 years at 20% p.a compounded annually?
A invests a sum at 8% simple interest. After 5 years the amount becomes 1.4 times the principal. Find the rate of interest used.
Suman paid ₹9,600 in interest on a loan she obtained 5 years ago with a simple interest rate of 16%. What was the amount of the loan she had taken?
- P deposits ₹(A - 10,000) in a bank at an interest rate of 10% per annum, compounded half-yearly, for 1 year. Meanwhile, Q invests ₹(A + 15,000) in the ...
A man deposited Rs. 9000 at 10% compound interest, compounded annually while Rs. 8500 at 13% simple interest per annum. What will be the difference betw...
Abhishek allocates Rs.1600 each into two different investment schemes, A and B. Scheme A provides simple interest annually at a rate of (R-2)%, while sc...
The amount of a certain sum in 3 years at simple interest at x % p.a. is ₹5,472 and the amount of the same sum in 7(1/2) years at the same rate, at si...
A man deposited Rs. 8500 in a bank offering compound interest of 20% p.a. compounded annually for first 2.5 years and after that simple interest of 25% ...
