# The coursework option consists of data manipulation and estimation in EViews, analysis and interpretation

**Paper, Order, or Assignment Requirements**

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Estimate the following model using OLS in Eviews,State/interpret the magnitude and statistical significance of the slope coefficient estimates and the statistical significance and fit of the overall regression,critically discuss the problem of heteroscedasticity in an estimation setting. Be sure to mention the consequences of heteroscedasticity on the properties of OLS estimators. Sort your entire sample on UK3m in Eviews, and use the upper and lower 1/3 of the sorted sample to conduct a Goldfeld-Quandt test. Is there evidence for heteroscedasticity in your model above based on the Goldfeld-Quandt test results? Briefly comment.

Perform a White test for heteroscedasticity and comment on your results.

Next, re-estimate the model using White-corrected variances. Comment on the differences in your White-corrected output and the one in Question (2).

Reading:

Text Book Required:

Gujarati and Porter, Essentials of Econometrics, 4th Edition, McGraw-Hill.

Koop, Analysis of Financial Data, Wiley.

Supplementary textbook: Brooks, Introductory Econometrics for Finance, 2nd Edition, Cambridge University Press.

This is book required for this subject recommended by teacher.