Core Values of Development Sustenance: Sustenance is the ability to meet life-sustaining basic needs like food, clothing, shelter, health, and protection. It is the minimum level required for a good life. If any of these basic needs are absent or shorter in supply, the situation is known as absolute underdevelopment.
In the previous article, Assumptions of Classical Linear Regression Model (CLRM), we discussed the assumptions of CLRM. In this article, we discuss the variance and standard error of OLS estimators and the Gauss-Markov Theorem. It has been shown in the post Simple Linear Regression Model that the OLS estimates are
In the previous post, we discussed how to estimate a sample regression model, i.e., and . by applying the OLS method on sample data, both in simple and multiple linear regression models. You can read these posts here: A Numerical Example of Multiple Linear Regression by Hand and Simple Linear Regression
Introduction of Regression Through Origin Models So far we have studied models like Where intercept is present. An economic example of these models is the Keynes consumption function written as: Where is autonomous consumption i.e., level of consumption when income is zero. In some cases, we wish to impose the
Health, Education, and Economic Development Health and Education as Objectives of Development Education and health are basic objectives of development; they are important ends in themselves. Health is central to wellbeing, and education is essential for a satisfying and rewarding life. Health and Education as Inputs of Development At the
What is Multiple Linear Regression? The linear regression model shows the linear dependence of one variable on one or more independent variables. A simple linear regression model consists of the linear dependence of one variable on only one independent variable. It is also called a bivariate or two-variable regression model. Such as
Short Questions Cash flow refers to the movement of money into and out of a business, project, or individual account over a specific period. For example, Revenue from sales of goods or services, loan repayments, interest payments, etc. Cash inflow is the amount of money coming into the business from
What is Capital Budgeting? Capital Budgeting is the process of evaluating and selecting long-term investment projects that involve significant capital expenditures such as purchasing new machinery, expanding production facilities, or launching new products. It compares costs and benefits of projects to determine its long-term profitability. Some of the most common
What is Cost Benefit Analysis (CBA)? Cost Benefit Analysis (CBA) is a process that’s used to determine the profitability of a project by estimating and comparing its costs and benefits measured in monetary terms after adjusting for the time value of money. Objectives of Cost Benefit Analysis To determine the
In this post we will discuss measures of poverty and inequality. What is Poverty? Poverty can be defined in two ways, absolute poverty and relative poverty. In ordinary language when we ask about poverty, we often mean absolute poverty. But what it is? United Nations define poverty as: A condition
Goodness of Fit So far, we have no way of measuring how well the explanatory or independent variable, X, explains the dependent variable, Y. In other words, we must know how well the OLS regression line fits the data. Are the observations tightly clustered around the regression line, or are
What is Money? Money can be defined as any asset or commodity that is widely accepted for the exchange of goods and services. The word “Money” is derived from the Latin word “Moneta”. According to Mankiw: Money is the stock of assets that can be readily used to make transactions.
LQ1 – Define project life cycle. Explain different stages of project lifecycle in detail. Project Project is an interrelated set of activities undertaken to achieve a specific objective. It is unique and temporary in nature with a defined beginning and end. Examples, bridge construction project, developing a new product, building
Theory of Consumer Demand The theory of consumer demand explains how consumers make choices about what goods and services to purchase and how much to spend, given their preferences, income, and prices. This theory helps us understand how consumers allocate their limited resources to maximize their satisfaction or utility. Important
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