The Student Room Group

Econometrics assignment help

Hi all,
I am relatively new to this platform and hope to get advice on an issue I am facing with data summation for my econometrics assignment. I am tasked to collect the UK's annual bank rate as part of my hypothesis on the factors affecting the GBPUSD exchange rate for the last 30 years (1980-2021), here is a link to the database containing all the bank rates:

The trouble with this method of collection is that the rates are completely random at least in relation to the GBPUSD exchange rate. There are historical data on exchange rates for a given specified date from 1991, as opposed to bank rates where the rates are just randomly without any specific timeframe in mind.

So, I had an idea is to calculate and find annual average value for the bank rate appropriate for the number of observations for the analysis.

My question is, am I breaking any rules from to the CLMR assumptions or any Gauss Markov assumptions?

Any answer or suggestions will be helpful.
It sounds like you are on the right track with your idea to calculate the annual average value for the bank rate. In terms of CLMR assumptions and Gauss Markov assumptions, as long as you are accurately and consistently calculating the average value for each year, you should not be breaking any rules. It's important to note, however, that using historical exchange rates from 1991 may not necessarily be a perfect match for the bank rates from 1980-2021. It's always best to try and use data that is as closely related and relevant to your analysis as possible.

Best of luck with your assignment!

Quick Reply