Answer to Question #244104 in Marketing for Lar

Question

Read more on studies/ journals that applies econometric methods. Then think of a current
research problem that you wish to apply the field of econometrics. State the objectives and list
down the variables involved in the study.
Have a research on journals that applies different methods on econometrics. Then identify the
steps in econometric research involved in the study.

Answer 1

Heteroscedasticity and autocorrelation are econometric difficulties that develop when the assumption of spherical disturbances is violated, i.e., the variance of error terms is not constant and the correlation between observation error terms is not equal to zero.