Format No. QSP/7.1/01.

F01 (A)
Issue No.06 Rev. No 7 Dated: July 16, 2018
___________________________________________________________________________

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

School of Business
Dehradun
______________________________________________________
COURSE PLAN
Programme : MBA OG

Course : : Econometrics

Semester : III

Session : July to December 2018

Batch : 2017 -19

Subject Code : MBCE 702

No. of credits : 3

Prepared by : Dr. N. N. Dalei _______________________________

Email : ndalei@ddn.upes.ac.in

Approved By

_______________________ _______________________

HOD Dean
UPES Campus Tel : +91-135-2770137
“Knowledge Acres” Fax : +91 135- 27760904
Kandoli Village, Website : www.upes.ac.in
Dehradun -248 007 (U K)
 COURSE PLAN
Subject: Econometrics Course: MBA(OG) 2017-19

Duration: July to December 2018 Subject code: MBCE 702

One Session: 90 Minutes

A. OBJECTIVES:

(a) To familiarize students with basic concept of econometrics, model building and estimation.

b) To teach the students various econometrics tools and their application in oil and gas sector.

c) To apply econometric techniques in decision making.

A1. LEARNING OUTCOMES OF THE COURSE

By the end of the course the students will
1. be able to formulate econometrics models in Oil and Gas domain;
2. estimate econometrics models in Oil and Gas domain after learning the concepts;
3. analyze and interpret the results of econometrics models in Oil and Gas domain;
4. and demonstrate ability to successfully use computer package such as STATA, Excel, etc.

OUTCOMES MAPPING OF COS AND CETS

ISLOs for MBA O&G Course Outcome 1 Outcome 2 Outcome 3 Outcome 4

Outcomes
MBCE 702

1 Students will demonstrate strong √ √ √ √

conceptual knowledge in
Econometrics for OG domain

2 Students will demonstrate effective √ √ √ √

understanding of econometrics and
its application in OG

3 Students will demonstrate √ √ √ √

analytical/econometrics skills in
Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018
 identification and resolution of
problems pertaining to OG and
general management

4 Students will be able to develop and √ √ √ √

evaluate alternate managerial
decisions and identify optimal
solutions based upon their
econometrics skills

5 Students will demonstrate effective √ √ √ √

econometric application capabilities
of their conceptual understanding to
the real world business situations

6 Students will be able to exhibit √ √ √ √

effective decision making skills,
employing econometrics tools in
analytical and critical-thinking ability

7 Students will exhibit the ability to √ √ √ √

apply and integrate econometrics
with domain perspective for the
purpose of planning,
implementation, and control of OG

8 Students will have global perspective

towards business situations in the
area of OG

9 Students will demonstrate effective

oral and written communication skills
in the professional context

10 Students will be able to work

effectively in teams and demonstrate
team building capabilities

11 Students will exhibit leadership and

networking skills while handling
business situations

12 Students will demonstrate sensitivity

towards ethical and moral issues and
have ability to address them in the

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

 course of business

13 Students will demonstrate √ √ √ √

employability traits in line with the
needs of changing dynamics of the
industry

14 Students will exhibit deployable skills

pertinent to the OG sector

B. COURSE OUTLINE

It has 6 modules which are as follows:

MODULE I: Review of Statistics and Mathematics

 Standard deviation, Variance, Probability, Probability distribution, Sampling,

Sampling distribution, Hypothesis testing
 Correlation and Covariance, Correlation and Regression
 Properties of summation, Mathematical expectation, linear function, Logarithmic
function, Basics of differential calculus, Partial differentiation.
 What is econometrics? Why a separate discipline? Terminology and Notation
 Goals and Methodology of econometrics
 Statistical versus Deterministic Model
 The Nature and Sources of Data for Economic Analysis, Measurement scales for
different type of data.

MODULE II: Simple Linear Regression Model

 Two Variable Regression Analysis: Basic Ideas

 Estimation and Hypothesis testing of Two variable Regression Model.
 Assumptions of the method of least squares for Classical Linear Regression Model
 Standard error of the least square estimates
 Gauss Markov Theorem
 Coefficient of Determination

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

MODULE III: Extensions of Simple Regression Model

 Regression through the Origin

 Scaling and Units of Measurement
 Functional Forms of Regression Models
 How to measure elasticity: The log-Linear Model
 Choice of Functional Forms
 Linear trend and Non-Linear Trend Model

MODULE IV: Multiple Linear Regression Model

 The Three-Variable Model: Notation and Assumptions

 Estimation and Interpretation of Multiple Regression Coefficients
 The meaning of Partial Regression Coefficients
 The Multiple Coefficient of Determination R2 and the Multiple Coefficient of
Correlation R
 R2 and Adjusted R2
 Hypothesis testing about individual regression coefficients
 Testing the Overall Significance of the Sample Regression
 Testing the Equality of Two Regression Coefficients

MODULE V: Dummy Variable Regression Model

 The nature of Dummy Variables

 The use of Dummy Variables in Seasonal Analysis.

 Interaction effects using dummy variables.

MODULE VI: Relaxing the Assumptions of the Classical Model (OLS)

 Multicollinearity

 Heteroscedasticity

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

  Autocorrelation

C.PEDAGOGY

The Education Methodology followed by faculty will consist of classroom instruction,

laboratory practice and analysis, self-study, home assignments etc. The students are also
expected to refer to the reference books, articles, papers and websites specified by faculty.

D. COURSE COMPLETION PLAN

Sessions: 2 (lectures of 1.5 hours each) per week.

Total hours per week: 3 hours per week.

E. EVALUATION & GRADING

Description Weight age Schedule

1. Internal Examination 50% Detailed Below

2. End term Exam 50% Academic Calendar

Internal Assessment: 50% Weightage (shall be done based on the following 3 components):

i) First Component :Individual Assignment 20% weightage

evaluation based on the
presentation/viva voce or MCQ Test.

ii) Second Component :Lab Practice in Eviews/ STATA/SPSS/Excel

30% weightage

iii) Third Compoent :Group Project Report 50% weightage

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

 Course Continuous

Outcomes Evaluation

for MBCE 702 Tools

Home
Assignment Class Test Lab Test Project Report

✓ ✓ ✓ ✓

Outcome 1 ✓ ✓

Outcome 2 ✓ ✓ ✓ ✓

Outcome 3 ✓ ✓ ✓ ✓

Outcome 4 ✓ ✓ ✓ ✓

(Refer Internal Assessment Sheet – Annexure 1)

The three components will be used for internal assessment for this course (Total 100 marks), the
details of each component is as follows:
a) Individual Assignment:
Individual student will be given a separate assignment to submit/present on a definite date.
MCQ test can also be conducted (20% weightage).
b) Lab Practice
All the students will be given a data set on a business problem. The solution to the
econometric exercise has to be done with the help Eviews/SPSS/ STATA (Software). The
final result from the analysis has to be interpreted and written. Students will submit the hard
and softcopy of the assignment.

c) Group Project:

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

 One project report based upon econometric analysis will be submitted by each group of
students (30% weightage) followed by presentation (20 % weightage).

End -Sem Examination: 50% Weightage

End-Sem examination shall be of three hours duration. The examination paper shall have objective
& theory questions, short and long numerical problems.

Passing Criterion
 Students have to pass in the end-semester exam and in the overall evaluation.

 Student scoring less than 40 out of 100 marks in absolute term in the Individual
Course (Subject), whether in the End Semester Exam or in the composite score,
shall be awarded as ‘F’ grade.
 Student scoring 85 and above in composite score (IA+ES), shall be awarded the
highest grade as ‘O’ i.e. “Outstanding” (on 10 point Scale).

Attendance
Students are required to have minimum attendance of 75% in each subject. Students with less than
said percentage shall NOT be allowed to appear in the end semester examination. The student
obtaining 100% attendance would be given 5% bonus marks for internal assessment.

Cell Phones and other Electronic Communication Devices: Cell phones and other electronic
communication devices (such as Blackberries/Laptops) are not permitted in classes, during Tests
or the Mid/Final Examination. Such devices MUST be turned off in the class room.
E-Mail and LMS: Each student in the class should have an e-mail id and a pass word to access the
LMS system regularly. Regularly, important information – Date of conducting class tests, guest
lectures, syndicate sessions etc. to the class will be transmitted via LMS. The best way to arrange
meetings with us or ask specific questions is by email and prior appointment. All the assignments
preferably should be uploaded on LMS. Various research papers/reference material will be
mailed/uploaded on LMS time to time.

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

F. DETAILED SESSION PLAN

SESSION TOPIC READINGS PEDAGOGY

Gujarati, D. Essentials of
Econometrics (3rd
Ed.,2006), Page No.-19-
MODULE I: Review of  Chalk & Talk
128
Statistics and Mathematics  PPT Presentation
Salavatore D. and Reagle
 Descriptive Statistics  Random
1. D.
 Probability and questions
Statistics and
Probability Distribution
Econometrics.  World Bank Data
 The Normal Distribution Chapter 2 and 3, Page 1- set
15.

 Properties of
Summation,
Expectation. Linear
Gujarati, D. Essentials of  Chalk and talk
function.
Econometrics (3rd  PPT
2.  Hypothesis testing Ed.,2006), Page No.-19-  Examples
128  World Bank Data
 Introduction to set
Econometrics

3. MODULE II: Simple Linear Gujurati D.N. Porter D.C.

Regression and Gunasekar S.  Chalk and talk
 PPT
 Basic ideas of bivariate Basic Econometrics
 Examples
regression.  World Bank Data
Chapter 2 and 3, Page 38-
set
 Estimation 90

Individual Assignment

 Lab-1 Exercise of Two Gujurati D.N. Porter D.C.

variable Regression and Gunasekar S. ,Basic  Practical
4.
Econometrics, Chapter 2  World Bank Data
and 3, Page 38-90 set

 Gujurati D.N. Porter D.C.

5. Hypothesis testing of  Chalk and Talk
and Gunasekar S.
Two variable Regression  Numerical
Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018
 Model
 Assumptions of the
method of least squares
for Classical Linear
6.
Regression Model.
 Standard error of the
least square estimates
7.
 Gauss Markov Theorem
and Coefficient of
Determination
 Lab-2 Exercise on Two
8. variable Regression
Estimation and
Hypothesis Testing.
Module III Extensions of
Simple Regression Model
9.  Regression
 Scaling and Units of
Measurement
 Functional Forms of
Regression Models
10.
 Measuring Elasticity:
The Log-Linear Model
 Linear trend and Non-
Linear trend Model
11.
Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018
Basic Econometrics Problem
 World Bank Data
Chapter 5, Page 116-141 set
 Lecture
 Examples
Gujurati D.N. Porter D.C.
 Discussion
and Gunasekar S.
 Presentation
Basic Econometrics  Numerical problems
 World Bank Data
Chapter 3, Page 67-78 set
Gujurati D.N. Porter D.C.  Chalk and Talk
and Gunasekar S.  Examples
 Discussion
Basic Econometrics  World Bank Data
set
Chapter 3, Page 76-81
Demand for Cellular  Practical
Phones and Personal  Discussion
Computers in Relation to
Per capita Personal  World Bank Data
Income, Page No 87 of set
Gujurati Book
Gujurati D.N. Porter D.C.  Chalk and Talk
and Gunasekar S.  Numerical
problems
Basic Econometrics  Discussion
Chapter 6, Page 160-169  World Bank Data set
 Chalk and Talk
 Examples
Chapter 6, Page 171-174  Discussion
Of GujuratI  World Bank Data
set
Gujurati D.N. Porter D.C.  Chalk and Talk
and Gunasekar S.  Examples
 World Bank Data
Basic Econometrics set
 Chapter 6, Page 174-175

Module IV: Multiple Linear

Regression Model
 The Three Variable
Gujurati D.N. Porter D.C.
Model: Notation and  Presentation
and Gunasekar S.
Assumptions  Examples
12.
Basic Econometrics  Discussion
 Estimation and  World Bank Data
Interpretation of Chapter 7, Page 204-209 set
Multiple Regression
Coefficients

Individual Assignment

 Lecture
 Examples
Gujurati D.N. Porter D.C.
 Meaning of Partial  Discussion
and Gunasekar S.
Regression Coefficients  Presentation
13.
 Multiple coefficient of Basic Econometrics  World Bank Data
Determination set
 R2 and adjusted R2 Chapter 7, Page 213-219

 Hypothesis testing of Gujurati D.N. Porter D.C.  Lecture

Individual regression and Gunasekar S.  Numerical
coefficients Problems
14.  Overall Significance of Basic Econometrics  Discussion
Sample Regression  Presentation
Chapter 7, Page 250-269  World Bank Data
set
15.
Lab- 3 Estimation of Multiple Regression Equation Estimation / World Bank Data

MODULE V:

Dummy Variable Regression  Lecture

Model  Examples
Chapter 9
16.  Discussion
Page No. 295

The Nature of Dummy (Gujurati)  Presentation
Variables  World Bank Data
 The use of Dummy set
Variables in seasonal
Analysis
 Interaction effects using Chapter 9,  Random
17.
dummy variables. Page No. 306 (Gujurati) questions
 Interpretation of  Examples

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

 dummy variable  Discussion
regression  PPT
 World Bank Data
set

 Lab-4 Estimation of
 Practical
18 Dummy variable Table 9.5 Page No 309
Regression  World Bank Data
(Gujurati)
set
 Lecture
 Examples
Module VI Relaxing the
Chapter 10, Page No.  Whiteboard
Assumptions of the CLRM
19 339-385 (Gujurati)  PPT
 Multicollinearity
problem and Estimation
 World Bank Data
of OLS
set

 Hetroscedasticity  Lecture
Problem and Estimation  Examples
20 of OLS Chapter 11, Page No.  Discussion
 Remedy for 386-432 (Gujurati)  Presentation
Hetroscedasticity  World Bank Data
problem set
 Lecture
 Lab-5 on  Whiteboard
Multicollinearity and  Examples
21 Heteroscedasticity
Table 10.5 Page No  Presentation
351 (Gujurati)  World Bank Data
set

 Lecture
 Examples
 Autocorrelation problem  Discussion
22.
and estimation of OLS
Chapter 12, Page No  Presentation
436-491  World Bank Data
set

 Lecture
 Examples
 Lab 6 Autocorrelation  Discussion
23. problem and estimation Table 10.7 Page No  Presentation
of OLS 354 (Gujurati)
 World Bank Data
set

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

  Lecture
 Review of the post mid  Examples
semester covered  Discussion
24. syllabus
Previous Course  World Bank Data
Materials and PPTS set

Group Project Presentation

Internal Assessment
G: 1 Individual Assignments

S.No. Title Assignment Type Module Session

No. No.
1 Simple Linear Regression MCQ 2 3

2 Written Test 4 12
Multiple Linear Regression Model

G: 2 Lab Sessions

S.No. Title Source of Data Module Session

No. No.
1. Two Variable Regression: Estimation and World Bank Data I 3
Hypothesis Testing ( Mean Hourly Wage set
by Education

2 Lab-2 Exercise on Two variable World Bank Data 2 8

regression Estimation and Hypothesis set

3 Lab- 3 Estimation of Multiple Regression World Bank Data 3 and 4 15

Equation Estimation set

4 Lab-4 Estimation of Dummy variable World Bank Data 5 18

Regression set

5 Lab-5 on Multicollinearity and World Bank Data 6 21

Heteroscedasticity set

6 Lab 6 Autocorrelation problem and World Bank Data 6 23

Estimation set

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

G: 3 Group Project

S.No. Title Assignment Type Module Session

No. No.
1 Identification of business problems, Synopsis of the 1-4 1-24
literature gap, research problem and Project
hypothesis, Objective and Econometric
Methodology, Reference in APA format.

2 Project Report 1-4 1-24

Group wise Project Report
3 Presentation 1-4 1-24
Group wise presentation Presentation

G: 4 SUGGESTED READINGS:

H: TEXT BOOKS:

 Gujarati, D. N. (2004), Basic Econometrics, New Delhi: Tata McGraw-Hill, Fourth Edition.

 Gujarati, D. N. , Porter D C, and Gunasekar S. (2012), Basic Econometrics, New Delhi: Tata
McGraw-Hill, Fifth Edition.

 Gujarati, D. N. (2006), Essentials of Econometrics, Tata McGraw-Hill, 3rd Edition.

 Salvatore, D. and Reagle, B. (2002), Statistics and Econometrics, Second Edn., Schaum
Outline Series

I: REFERENCE BOOKS

a) Theory of Econometrics, A. Koutsoyiannis, Palgrave, 1971

b) An Introduction to Econometrics, G. S. Maddala, John Wiley and Sons Ltd, 2001.

c) Econometric Methods, Johnston,J. (1991), Tata McGraw-Hill, 3rd Edition.

J: WEB SOURCES:

1. http://www.rbi.org.in/

2. http://www.worldbank.org/

3. http://www.imf.org/external/index.htm

4. http://www.macroscan.org/

5. http://gretl.sourceforge.net/win32/

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

K: Database:

1. http://www.cmie.com/kommon/bin/sr.php?kall=wcontact&page=prowess

L: Instructions

1. Students are requested to come to the class on scheduled time. Online attendance will be
considered only. If any malfunctioning of card issues is there, they will inform earlier.
Request for manual attendance will not be considered for the latecomers. Request for
attendance after 10 minutes from the commencement of class is not going to be accepted.
Practice of personal visits to the faculty desk on attendance issues is highly discouraged.

2. Students are advised to carry a scientific calculator and the statistical tables (Appendix D,
Page No 851 to 866) from Basic Econometrics Book by D.N. Gujurati.
3. Lab practice is mandatory for all the students. Post lab discussions on the Assignment will
be highly appreciated.
4. Class notes and PPT uploaded on LMS is not substitute for the regular lecture.
5. Use of electronic devices such as Mobile, Laptops is prohibited unless it is instructed by
the faculty. In case of any violation, confiscating of the devices will be done for 7 days and it
will be reported to the Dean Students Affairs after the class.
6. Late Submission of the Home Assignments are not acceptable. There will be deduction of
marks for the late submission.
7. Personal discussion within the classroom is prohibited and in these cases, the students will
be marked as absent for the same class.

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018

 ANNEXURE I

INTERNAL EXAM ASSESSMENT SHEET

Programme
Name MBA (OG) III
Faculty Name Dr. N.N. Dalei
Subject Econometrics
Subject Code MBCE 702
Assignment/
MCQ Lab Practice Group Project
50%
20% weightage 30% weightage weightage Total 100
Enrl. No. Name I II Practice Marks

1
2
3
4
5
6
7
8
9
10

Course Plan Prepared by Dr. N. N. Dalei, Econometrics, JULY to DEC 2018