Artificial Intelligence for Economics Nptel Week 4 Answers
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Nptel Artificial Intelligence for Economics Week 4 Answers (July-Dec 2025)
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Question 1. There are two variables X and Y, for both of which we have time series observations. We have built the following 4 models:
M1: X(t)=2^ * Y(t-1)+3^ * Y(t – 3) + X(t – 2) +5^ * X(t-3)
M2: X(t) = 2X(t-2) + 5X(t-3)
M3: Y(t) = Y(t-1) + 2Y(t-2) + 0.2X(t-2)
M4: Y(t)=Y(t-1)+2^ * Y(t – 2) + Y(t – 3)
On a validation set, they are found to have root mean square errors of 5.5, 7.8, 2.8, 4.9. Which of the following can then be said?
a) (A) X granger-cause Y but not the reverse
b) (B) Y granger-cause X but not the reverse
c) (C) There is bidirectional Granger causality between X and Y
d) (D) There is no Granger-causal relation between X and Y
Question 2. Which of the following are correct about Granger Causality?
a) (A) It considers all variables involved to be Random Variables
b) (B) Granger causal inference is based on the notion that cause must precede the effect in time
c) (C) Granger Causality is not suitable for contemporaneous causality (where both cause and effect happen at same time)
d) (D) Granger Causality is not suitable for bidirectional causal relations
Question 3. Why are Shapley Values used for in a regression setting?
a) (A) To identify the contribution of each predictor to the predictand’s value
b) (B) To identify possible cause-effect relations between each predictor and the predictand
c) (C) To identify possible cause-effect relations between different predictors
d) (D) To distribute the predictand’s value as a weighted sum of each predictor’s values
These are Nptel Artificial Intelligence for Economics Week 4 Answers
Question 4. Every quarter, the GDP growth rate is known to depend on 4 major factors, (f1, f2, f3, f4). A predictive model has been trained to predict the quarterly GDP growth rate from these 4 factors. In a particular quarter, a Shapley Value analysis shows that shap(f3)=5.8, shap(f1)=3.4, shap(f2)=-0.2, shap(f4)=-2.8. What conclusions can we draw from these results?
a) (A) The GDP growth rate that quarter was higher than normal
b) (B) The GDP growth rate that quarter was lower than normal
c) (C) Some of the factors aided, other factors impeded the GDP in that quarter
d) (D) Factors f3, f1 were stronger than their usual values that quarter, while f2 and f4 were weaker
Question 5. What is “random” in randomized control trials?
a) (A) The population is randomly divided into “treatment” and “control” groups
b) (B) The “treatment” is given randomly to members of the population
c) (C) The “cause” and “effect” variables are considered as random variables
d) (D) Impacts of unknown factors and confounders are considered as random variables
These are Nptel Artificial Intelligence for Economics Week 4 Answers
Question 6. Consider following two-person strategic form game with S₁ = S₂ = R and the payoff functions of the players are u₁ = x² − 2xy and u₂ = xy − y² where x ∈ S₁ and y ∈ S₂. Which of the following constitute a Nash Equilibrium?
a) (A) (0,0)
b) (B) (10,0)
c) (C) (5,18)
d) (D) None of the above
Question 7. What is a Nash Equilibrium of the above game?
a) A. Y
b) B. Z
c) C. X
d) D. Y
Question 8. In Bayesian Games what information is not known by a player?
a) (A) Type of the other player in terms of payoffs
b) (B) Name of the other player
c) (C) Possible strategies of the other player
d) (D) None of the above
These are Nptel Artificial Intelligence for Economics Week 4 Answers
Question 9. How many Nash Equilibrium (equilibria) does this game have?
a) A) 1
b) B) 2
c) C) 3
d) D) 4
Question 10. The Nash Equilibrium (Equilibria) are given by
a) (A) (C,C)
b) (B) (C,C) and (C,M)
c) (C) (C,C) and (M,M)
d) (D) (C,C), (M,M), (M,C), and (C,M)
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These are Nptel Artificial Intelligence for Economics Week 4 Answers
