EViews Assignment Help

Read the following solution based on understanding the relationships between two variables viz Australian Dollar and Oil Price using the statistical tool, EViews. The example demonstrates the application of EViews Assignment Help using the GARCH model. Students who wish to seek EViews Homework help should find this application very informative. The solution explains the complex relationship between the two variables from the short term and long term perspectives. The solution leverages multiple concepts such as integration model, time series analysis to answer the key questions.

The relationship between the EViews questions with answers dollar and oil prices is very complex. The two can influence each other to produce a vicious cycle, but their short-term relationship is different from the long-term.
In the short term, dollar depreciation does not affect supply and demand, but affect speculation and investment in oil futures markets. As the dollar declines, commodities, including oil attract investors.
The aim of this report is to criticallyEViews project help evaluate the relationship between the Australian Dollar and the Oil Price.

We will analyse the relationship that may exists between these two variables, using a co-integration model, sinceEViews assignment help they are time series. Data was has been sourced from Thompson Reuters DataStream and it consists of quarterly observations for the past 25 years. Since the oil is the principal strategic energetic resource in the world, it is expected that its price fluctuations influence help with EViews homework the evolutions from the other markets, especially the one of the exchange-rate. In our case, the Australian to US dollar exchange rate (USDAUS) is considered to be the EViews assignment solutiondependent variable and the Oil price (OIL) is the independent one. However, since the relationshipEViews homework help between them is more complex, being affected by other external influences, we have also considered among the independent variables the Australian and American share markets, ASX and DJIND, and the Australian and American interest rates, AUIR and USIR. Since the Australian to US dollar exchange rate (USDAUS = USD/AUS) is the inverse function of the US to Australian dollar exchange rate (AUSUSD = AUS/USD = 1/(USD/AUS), these two series are almost perfect correlated to each other, and we will consider only one of them.
All the data was made logarithmic, an operation which helps to eliminate some differences between the variables’ size, have data series EViews project help that can be comparable and, also, bring them more closely to the normal distribution. The model which best describes the relationship between the Australian dollar and the Oil price is the VECM, which has the following form:
D(LUSDAUS) = -0.102954*( LUSDAUS(-1) + 1.71895*LASX(-1) + 0.21006*LAUIR(-1) – 1.42567*LDJIND(-1) – 0.29609*LOIL(-1) – 0.90232*LUSIR(-1) + 2.65216)
Using the VECM method it was demonstrated that there is a long-run association between the exchange rate and the oil price. On long term, there is expected that the fluctuation of the oil price to have a negative direct influence on the evolution of the Australian to EViews assignment help American dollar exchange rate, along with the other independent variables (which also affect the exchange rate). However, the short EViews assignment solution run causality which runs from the independent variables to the exchange rate could not be demonstrated. We must mention that the only problem of the model is the lack of normality.

The results have indicated that the December 2015 Paris agreement EViews assignment solution on greenhouse gas emissions was not affected the model, since this year was not found to be a breakpoint.

Investing in futures becomes both a hedge against a weakening dollar and an investment vehicle that could yield substantial profit, EViews project help especially in a climate where oil production capacity is too high, increasing demand, declining interest rates, real estate EViews assignment help market is declining and the banking system is in crisis. To answer to the second question, daily observation from the past two years was considered collected from the same source. The dependent variable remained the exchange rate EViews project help and the independent variables were: the Oil price (OIL) the Australian and American share markets (ASX and DJIND) and the Gold Bullion (GOLD).
Here, a GARCH model was implied. Because EViews assignment help this type of models relay on the white noise process we have used the first difference of the logarithmic data. The estimated model is:
The mean equation:
DLUSDAUS = -0.19145*DLASX – 0.01499*DLDJIND – 0.05475*DLGOLD + 0.00054*DLOIL +
(0.0000) (0.6723) (0.0673) (0.9631)
+ 0.00039 (0.1493)
The variance equation:
GARCH = 3.38525e-07 + 0.0238*RESID(-1)^2 + 0.97065*GARCH(-1)
(0.0954) (0.0722) (0.0000)
The model is free of errors, but most data analysis using EViews assignment help of the coefficients are not statistically significant. This means that the volatility of exchange rate is influenced negativehelp with EViews assignment by only by the volatility of the Australian Index market (ASX) and the influence of oil price is not significant in this case.
The influence of the December 2015 Paris agreement make my EViews assignment on greenhouse gas emissions on the model could not be studied.