1Associate Professor and Head, Department of Mathematics, Jamal Mohamed College, Trichy, 620020, Tamil Nadu, India, Email: simohideen@yahoo.co.in
2Associate Professor, Department of Economics, Jamal Mohamed College, Trichy, 620020, Tamil Nadu, India, Email: idhayathjmc@gmail.com
3Assistant Professor, Department of Mathematics, Jamal Mohamed College, Trichy, 620020, Tamil Nadu, India, Email: abugous2004@yahoo.co.in
Online published on 28 June, 2016.
A mathematical model becomes an econometric model only when we include the stochastic term. The model is generally based on certain assumptions regarding the behavior of stochastic variable. Violation of these assumptions leads to certain problems in the model estimation. This paper aims to develop methods to avoid the violation of stochastic assumptions with the help of algebraic functions due to the relationships between the values of independent and dependent variables.
Algebraic functions, Heteroscedasticity, Autocorrelation and Regression
