Name:

Enrolment No:

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN
Internal Assessment-II, Oct. 2020
Program/course : MBA OG Semester : III
Subject : Econometrics Max. Marks : 50
Code : MBCE 702 Duration : 1 Hrs

Answer the questions:                                                                                                              

FM: 50

Instructions: Type your answer in the space provided with font size 12, line spacing 1.5, font-
times new roman Use equations in MS Equation 3/ image format and graphs in image format.
Plagiarism should not be above 10%.
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Q1.  Describe individual hypothesis testing with one suitable example from energy sector
highlighting the following points:

 Introduction
 Example from energy sector with five variables. Use cross-sectional data: Data for 100
countries for 2019 or any latest available year.
 Hypothesis formulation: Null hypothesis and Alternative hypothesis
 Decisions on rejection of null hypothesis.
 Inference drawn from it.

Answer
Name:
Enrolment No:

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN
Internal Assessment-II, Oct. 2020
Program/course : MBA OG Semester : III
Subject : Econometrics Max. Marks : 50
Code : MBCE 702 Duration : 1 Hrs

Introduction
 Taking the 99 countries data of year 2018 to state the relationship between different
variable
 Taking Variable GDPR, FDI, Fuel Import, Oil Rent & Population growth Rate
 GDPR is considered as an independent variable
Example

S.NO COUNTIRES YEAR GDPR FDI FM OR PR

1 Afghanistan 2018 1.840089 119435105.7 13.85013 0.00183 2.384761
2 Bangladesh 2018 7.863709 2940222420 0.026174 1.050045
3 India 2018 6.119587 42117450737 35.31729 0.454269 1.037323
4 Nepal 2018 6.700995 68186670.75 0 1.65398
5 Pakistan 2018 5.836417 1737000000 28.64398 0.478417 2.05588
6 Srilanka 2018 3.306417 1610543974 0 1.048393
7 Austrailia 2018 2.940334 62173206194 13.59908 0.315085 1.536106
8 China 2018 6.751614235365050036 17.48855 0.431876 0.4559
9 Cambodia 2018 7.469169 3212633447 11.87428 0 1.490355
10 Honkong 2018 2.861565 97036255479 2.627931 0 0.79905
11 Indonesia 2018 5.169706 18909826044 16.70791 1.168618 1.13377
12 Japan 2018 0.323207 24605910854 23.32633 0.002277 -0.20267
Name:
Enrolment No:

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN
Internal Assessment-II, Oct. 2020
Program/course : MBA OG Semester : III
Subject : Econometrics Max. Marks : 50
Code : MBCE 702 Duration : 1 Hrs

Equation Used in E-views = GDPR(as Dependent Variable) , PR,FM,FDI & Oil Rent
(Independent Variable) using least square

Hypothesis Formulation:
 Let’s
H0: B^ =0 (Independent Variable is not impacting Dependent variable)
Ha: B^ = 0 (Independent Variable is impacting Dependent variable)

Decision on rejection of Null Hypothesis

 Using P-Value for decision on rejection of Null hypothesis
Name:
Enrolment No:

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN
Internal Assessment-II, Oct. 2020
Program/course : MBA OG Semester : III
Subject : Econometrics Max. Marks : 50
Code : MBCE 702 Duration : 1 Hrs

 Using P-Value we get the exact level of significance at which H0 can be rejected to
establish relationship between the variable
Population Growth rate
 PM for PM the P- Value is 1.34% thus it is approx. 1% keeping all other factor constant
we can reject H0 at 1% level of significance
 Thus, when the growth rate of PM will increase by 1% then GDPR will increase by
0.4732 % of the total GDP statistically at 1% level of significance, keeping all other
factors constant.
Fuel Import
 FM (Fuel Import) P-Value is 93.36 % thus it is clearly state that FM is not an significant
predictor of GDPR
 Thus H0 Null hypothesis accepted for these keeping all other factor constant
FDI
 FDI is also not the significant predictor of GDPR keeping all other factor constant
as it gives P-Value = 52.2% (Thus H0 Accepted)
OIL RENT
 Oil Rent P-Value is 0.24% thus H0 can be rejected at 1% level of Significance
keeping all other factor constant.
 Thus, when the Oil Rent will increase by 1% then GDPR will decrease by 0.098584
% of the total GDP statistically at 1% level of significance, keeping all other factors
constant.

INFERENCE DRAWN FROM THE ABOVE RESULT

 The Significant predictor of GDPR are Population growth rate and Oil Rent.
 It is clear from the above hypothesis testing that for GDPR, PM & Oil rent play a
significant role
 FDI & FM are not a significant predictor to show the GDP growth as Null
Hypothesis is establish between them (accepted)
Name:
Enrolment No:

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN
Internal Assessment-II, Oct. 2020
Program/course : MBA OG Semester : III
Subject : Econometrics Max. Marks : 50
Code : MBCE 702 Duration : 1 Hrs

 With 1% increase in PM there is positively increase in GDPR by 0.4732 percentage

(i.e. keeping others factor as constant)
 With 1% increase in Oil rent there is decline in GDPR by 0.098584% ( keeping all
other factor as constant )