QUESTION:

a) State any two weaknesses of R² as a measure of goodness of fit of a regression model

b) In the context of a linear regression model , give two examples of hypotheses that cannot be tested using either an F-Test or a t-Test

c)State any three methods that can be used to estimate the parameters of a linear regression model

d)In what ways does a population regression function differ from a sample regression function?

e)Explain three important implications of cointegration among sets of no-stationary time series

f) Distinguish between the short run and long run dynamics in a VECM