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    Regression

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    A.What is the marginal propensity to consume(MPC)- the amount of additional consumption expenditure from an additional dollar's personal disposable income? b. Is the MPC statistically different from 1? show the appropriate testing procedure. c. What is the rationale for the inclusion of the prime rate variable in the model? A priori, would you expect a negative sign for this variable? d. Is b(sub 3) significantly different from zero? Why? e. Test the hypothesis that R^2 = 0. Show work. f. Compute the standard error of each coefficient. Show work.

    Based on the U.S data for 1965-IQ to 1983-IQ (n=76), James and Adibi obtained the folowwing regression to explain personal consumption expenditure in the U.S. ^ Y = -10.96 + .93X(sub 2t) - 2.09X(sub 3t) t= (-3.33) (249.06) (-3.09) R^2 = 0.9996 F= 83,753.7 where Y = the PC

    Regression

    (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

    Composite Forecast for Equal Weights

    13.11 Refer to the data of exercise 12.11, showing forecasts of growth rates in U.S. gross national product. Compare the mean squared errors of the two sets of forecasts f4t and f5t. Is either of these conditionally efficient with respect to the others? 13.1 We have analyzed the forecast of Table13.1. Consider now bas

    Economics/Statistics

    5.9.) To find out if there is any relationship between teacher's pay and per pupil expenditure in public schools, the following model was suggested: Payi=β1+ β2 Spendi +ui, where Pay stands for teacher's salary and Spend stands for per pupil expenditure. a.) Plot the data and eyeball a regression line. b.) Sup

    Regression Analysis - CAPM

    This needs to be done in Excel. The CAPM states that the excess return on a stock is proportional to the excess return on the market. This implies: X stock = beta*(X market) Where X is the excess return = return- (return on risk free asset). One criticism of the CAPM regression we ran in class is that it excludes rel

    Economics

    Problem 7.6 Optimal Input Mix. The First National Bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent ad in a similar advertising campaign in Massachusetts Business, a regional business magazine, generated 1,000 inquiries. E