Author: economicslive

F-Test

F- test is generally known as the variance ratio test and it is used mostly in  context of analysis of variance. This technique was developed by Prof.Fisher. Prof. Fisher developed this test on the basis of agricultural experiment. For test of hypothesis of equality among several sample means. The F-test is considered to be more appropriate. …

Gauss Markov Theorem [BLUE Properties]

Given the assumptions of the classical linear regression model, the least-squares estimators, in the class of unbiased linear estimators, have minimum variance, that is, they are BLUE. In other words Gauss-Markov theorem holds the properties of Best Linear Unbiased Estimators. Following are some of the assumptions which should be taken into consideration for the mathematical derivation …

Properties of Good Estimator

Small Sample properties Unbiased Estimator : Biased means the difference of true value of parameter and value of estimator. When the difference becomes zero then it is called unbiased estimator. i.e., Best Estimator : An estimator is called best when value of its variance is smaller than variance is best. i.e . Where   is another estimator. Efficient Estimator : …

Basic Competitive Models

Basic competitive models gives an answer of the control problems of an economy i.e., who makes the decision of what to produce, how to produce and for whom to produce. We know that, economics has been evolved and developed in the framework of a free market economy in which the resources of the society are owned …

History of Indian Banking System

The first bank in India, called The General Bank of India, was established in the year 1786. Then the East India Company established the Bank of Bangol (1809) , Bank of Bambay (1640) and Bank of Madras (1843). These three banks were called Presidency Banks. The next bank was Bank of Hindustan which was established in …

Chi-Square Distribution [Properties]

Chi- Square is an important non-parametric test and as such now rigid assumptions are necessary is respect of the type of population we require only the degree of freedom for using this test. Non- parametric chi-square test can be used  As a test of goodness of fit As a test of independence  This test was developed …