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Laura wanted to build a multiple regression model based on advertising expenditures and coffee times price index. Based on the selection of all normal values she obtained the following:

Laura wanted to build a multiple regression model based on advertising expenditures and coffee times price index. Based on the selection of all normal values she obtained the following: 1) Multiple R = 0.738 2) R-square = 0.546 By using lagged values she came up with the following: 3) Multiple R = 0.755 4) R-square = 0.57

Estimation of Demand

In a study of the demand for life insurance, Executive Insurers, Inc. is examining the factors that affect the amount of life insurance held by executives. The following data on the amount of insurance and annual incomes of a random sample of 12 executives were collected. Observation Amount of Life Insurance Annual Income

Cellon case help

Cellon, a manufacturer of a home insulation, wants to develop guidelines for builders and consumers regarding the effects (1) of the thickness of the insulation in the attic of a home and (2) of the outdoor temperature on natural gas consumption. In the laboratory they varied the insulation thickness and temperature. Please

Omitted bias + f-stat

The following regression model represents the demand for peanut butter: log qt = B1 + B2 logpt + B3log rt + B4logmt + ut where qt is the quantity of peanut butter consumed at time t; pt is the price of peanut butter; rt is the price of jelly; and mt is income per capita. Suppose an analyst estimates the following model:

Hypothesis testing

1) One member of the management board claims that for every $1000 increase in income, the amount of life insurance held will go up by $5000. Choose an alternative hypothesis and explain your choice. Does your estimated relationship support this claim? Use a 5 percent significance level. 2) Test the hypothesis that as income

Regression Analysis

A life insurance company wishes to examine the relationship between the amount of life insurance held by a family and family income. From a random sample of 20 households, the company collected the data in the file insur.xls. The data are in thousands of dollars. (a) Estimate a linear relationship between life insurance (Y) a

Engineering Economics: Regression, Learning Curve

7. Identify the formula for the straight line that describes the relationship between the two variables X and Y from the data below. X 4 5 6 7 8 Y 21 24 25 28 8. You have the following historical costs for an item for the last five years. You believe there is a trend that will continue into


Please assist me with the attached. There are two documents posted. The .xls has the data and the regression - see tabs at bottom left. The .doc has the actual problem. The question and background is in black, my answers so far are in blue and the questions I need answered are highlighted in yellow ? they are 6,7,8,9. Dema

Using OLS Estimation for prediction

We have 3 variables X Y Z X = F (Y, Z) Data is 2000-2005. I use OLS to Estimate the model and get a standard result.. for arguments sake I'll say it is X=3.00 -5.00Y +250Z I want to be able to predict the value of X with what I expect the values of both Y and Z to be in the year 2006. I expect Y to be 50 in 2

Beta using regression analysis

Think about the risks inherent in your Ficticious Company and how to quantify these risks. Download the data provided and calculate the measure of risk for this company (defined as Beta in the Capital Asset Pricing Model - CAPM) and explain why this calculation is a measure of risk. Discuss when this type of calculation is appro

Sourcing Data for Forecasting Model

I am working on a forecasting model and am struggling to source time-series data on anything except consumer expenditure (which cannot be used). I require an intersting dependent variable sourced from a respectable website (ie - UK Office of National Statistics, etc) as well as 2-4 independent variables sourced from sites whi

Prove Math (Without Regression as a Proof)

I can prove this problem using regression, but I don't have an equation for it. Please help, thanks! a.) Suppose you multiply all X1 values by 2 in an equation with one independent variable (X1) and a constant. What will be the effect of this rescaling, if any, on the coefficients (SYMBOL1 and SYMBOL2) and their standard erro

Interpret Models

I need help with this problem that was given in class, I want to say Model II is a better model because it has a better "perfect fit" but I don't think that is the only reason, please help.

Naming this Problem

I need help with this problem, I want to say that it deals with multicollinearity. Please help me, thank you.

Dummy Variable Analysis

Salary and Gender - Testing for Discrimination The starting salary (Y) is related to years of education (X), previous work experience (E) and hiring time (T) for 93 employees of a bank. Suppose that you have been hired by a government agency to investigate whether there has been any salary discrimination on the basis of gender

Multiple Choice Questions-Review

1. As an objective, the maximization of profits ignores A. the timing of cash flows B. the time value of money concept C. the riskiness of cash flows. D. All of the above. 2. Which of the following is the best example of "how should goods and services be produced"? A. the production of a new manufacturing facili


I must construct a graph showing the relationship between two variables, X & Y x: 0 1 2 3 4 5 6 7 ----------------------- y: 50 39 29 20 12 5 0 In my graph I must do the following: 1.Determine whether the relationship is negative or positive 2.I must calculate the slope of the relationship between x & y when x equa

Relationship between gross income and tax paid

The gross income and tax paid by a cross-section of 30 companies in 1988 and 1989 is given in the file tax.xls (a) Use these data to estimate the relationship for each of the years 1988 and 1989. TAXt= à?1 + à?2 incomet + et (b) Give brief interpretations of the two estimates of à?2 (c) Give brief interpretation

Develop Regression Model

The first file is the 2 problems; the second file is the data for the first problem; and the third is the data for the second problem. Problems must be completed in SAS, or STATA.

Three-Variable Regression overview

7.9 A three-variable regression gave the following results {see attachment}. (a) What is the sample size? (b) What is the value of the RSS? (c) What are the d.f of the ESS and RSS? ... *Please see attachment for complete list of questions (including 7.12 and 7.15)

Problems are in attachments - Attachments Fixed!

Please only do 5.10, 5.14, 5.16 for 5.10 please use this adjusted data for the years of 1984, 1985, and 1986 1984: 89 114.5 1985: 95 120 1986: 104 170 the other years will use the original data

Case Study on Capital Asset Pricing Model: Beta Management Company

Please see the two attachments - one outlines the questions and the other is the case study (Beta Management Company). 1. Compute the standard deviation of the stock returns of California REIT and Brown Group during the past 2 years. 2. Suppose that Beta's position had been 99% of equity funds invested in the index fund,


(Y (sub (i)))= B (sub 0) + B(sub 1) X(sub i) + B(sub 2) D(sub2i) + B(sub 3) D(sub 3i) + u(sub i) where: Y= annual earnings of MBA graduates X= years of service D(sub 2)= 1 if Harvard MBA =0 otherwise D(sub3)= 1 Wharton MBA = 0 otherwise a. What are the expected signs of the various coefficients?why?

Assume that the quarterly supply & demand functions for DVD players...

3. Assume that the quarterly supply & demand functions for DVD players are: Qd= 340-6p and Qs=100+2p (a) What is the equilibrium price for DVD players (b) If a price ceiling (legal maximum price) of $28.50 was established would this lead to a shortage, surplus, or no change? What would that shortage/surplus be? 4. On the Bu

Firm's Product Elastic

1. The Johnson Robot Company's making officials report to the company's chief executive officer that the demand curve for the company's robots in 2001 is P=3,000-40Q, where P is the price of a robot, and Q is the number sold per month. a. Derive the marginal revenue curve for the firm. b. At what price is the demand for the fi

Regression Formula

Gold Trackers monitors the price of precious metals and has daily data on prices and sales of gold for the past several years. One of their new MBA financial wizards has estimated the following relationship for gold sales in the past year of trading (250 observations): Q = 4000 ? 0.01P + 1.5I ? 1.25X + 2.0S R? = 0.96 (85