ETF2100/5910 Introductory EconometricsAssignment 2, Semester 2, 2020IMPORTANT NOTES:•Type your answers using Microsoft Word OR write your answers clearly. You must submit aPDFfile to Moodle. Other file formats are not accepted.•Notation used in the assignment needs to be typed or written correctly and properly. Marksare also awarded for presentation.•When doing calculation, keep at least 4 decimal in each step for precision. For final answer, 3decimal point is sufficient, unless specified otherwise in the question.•In this assignment, when you need to usetorFcritical value, you can either find it usingEviews or use the statistical table. You should know how to do both.•This assignment is worth 20% of this unit’s total mark.•ETF2100 students must answer Question 1,2,3 and Question 5.•ETF5910 students must answer Question 1,2,3 and Question 4.•Total marks for ETF2100 and ETF5910 students are both 40.•Marks will be deducted for late submission on the following basis: 5 marks off for each daylate, up to a maximum of 3 days. Assignments more than 3 days late will not be marked.DataThe dataset used for question 1, 2 and 3 is a dataset on pollution in Beijing, China and is availableon Moodle in both EViews workfile format (.wf1) and in csv format (can be opened in Excel).The variables are measured daily at 6PM from 2nd January, 2010 until 31st December, 2015(there are some days missing) and are as follows:•pm25 (in micrograms per cubic metre):TheP M2.5concentrationis a measure of airpollution. More precisely it is the concentration in the air of particles which are less than 2.5micrometres in diameter.•dewpoint (in degrees Celsius): Thedew pointis the temperature to which the air must becooled to become saturated with water vapour.•humidity (in percentage points): A measure of the amount of water vapour in the air.•se: A dummy variable equal to 1 if the wind comes from the south east and 0 otherwisePage1of11