– Multicollinearity:
Nature of Multicollinearity, Is Multicollinearity really a problem? Practical consequences, detection and remedial measures of multicollinearity.
– Heteroscedasticity:
Nature of heteroscedasticity, consequences, detection and remedial measures of heteroscedasticity.
– Autocorrelation:
Nature of autocorrelation, theoretical and practical consequences of autocorrelation, detection and remedial measures of autocorrelation.
– Regression on Dummy Variables.
Nature of dummy variables, regression with a mixture of quantitative and qualitative regressions: the ANOVA models, some illustrative examples of regressions on dummy variables, the structural stability of regression models/ comparing two regressions with dummy variable approach , interaction effects using dummy variables, use of dummy variables in seasonal analysis, piecewise linear regression.
– Specification Errors:
Model specification criteria, Types of specification errors: omission of relevant variable, inclusion of irrelevant variable, adopting a wrong functional form, errors of measurement; Consequences of model specification errors, and tests of specification errors.

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