WEEK 13 & 14 ACTIVITY 9
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WEEK 13 & 14 ACTIVITY 9
Name: Akul Patel
UC ID: 005011924
Activity I
- Suppose Y is a dichotomous dependent variable, and the data-generating process for
Y can be expressed as:
Y
i
=0.1+0.03X1
i
−0.02X2
i
+U
i
Interpret the coefficients on X1 and X2
Coefficient of X1 and X2 is 0.03 and 0.02 respectively.
If coefficient of X1 is positive, there will be a positive relationship between X1 and Y.
For a one-unit increase in X1, the log-odds of Y being 1 increase by 0.03 while X2 is
constant because Y is a dichotomous variable.
Coefficient of X2 is negative therefore there will be a negative relationship between X2
and Y. Increase of X2 by 1 unit will decrease Y by 0.02 unit while X1 is constant. Activity II
- Suppose you are trying to learn the relationship between the prices you charge for
your product and the likelihood of purchase by individuals offered that price. You offer your
product online and for one month have randomly posted prices between $10 and $30. Using data
on purchases and prices, you get the following estimates for a linear probability model:
Purchase
i =1.7−0.06×Price
i
You are interested in the effect of a $20 price increase (i.e., moving from the lowest price to the
highest) on the likelihood of Purchase. Why is answering this question problematic using this
model?
For 10 dollars: Purchase = 1.7−0.06×10 = 1.1
For 20 dollars: Purchase = 1.7−0.06×20 = 0.5
For 30 dollars: Purchase = 1.7−0.06×30 = -0.01
Thus we can conclude from the above result that for $20 purchase will decline. However,
this model does not include other relevant variables that could affect purchase decisions,
such as product features, customer demographics, marketing efforts, etc. Omitting
important variables can lead to omitted variable bias. Also, for 10 dollar price model gives probability above 1 which shows it is not a
meaningful value. For 30 dollar price model gives probability in negative value and it is
meaning less thus we can say that answering by using above model is problematic as it
does not include various other factor and it violates the probability range of 0 to 1.
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Related Questions
solve within 30 mins
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1
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According to the following given information how to determine:
Production
Times
(months)
1
9 10
11 12 13 14 15
product of
970 1,180 1,239 1,293 1,350 1,398 1,410 1,480 1,492 1,500 1,520 1,592 1,605 1,660 1,685
(Z unit)
A) Break Even-point or points?
B) How is to construct the relationship between entire variables through the simple drawing for
all above figures and highlighting of Break Even point the drawing?
C) Justify your final answer for each line of production.
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Hi hlo Expert Hand written solution is not allowed.
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Please provid the breakdown of coordinates for the graph and other answers with explanation:
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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1-24 A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for business students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs) cost $5 each. The tutor was paid $25 per hour, for a total of $75 for each tutoring session.
(a) If students are charged $20 to attend the session, how many students must enroll for the company to break even?
(b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility. How would this affect the break-even point?
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DEPENDENT VARIABLE
Qc
R- SQUARE
P- VALUE ON F
64
0.8093
0.0001
INDEPENDENTVARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
8.20
4.01
2.04
0.0461
PC
-3.54
1.64
-2.16
0.0357
M
0.64287
0.19
3.38
0.0014
PA
0.7854
0.38
2.07
0.0439
Explain the interceptand the coefficients of Pc, M, and PA.
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Do not solve list all the X and Y variables, objective function and contraints for the below problem
ASW Publishing, Inc., a small publisher of college textbooks, must make a decision regarding which books to publish next year. The books under consideration are listed in the following table, along with the projected threeyear sales expected from each book.
Book Subject Type of Book Projected Sales (000s)
Business calculus New 20
Finite mathematics Revision 30
General statistics New 15
Mathematical statistics New 10
Business statistics Revision 25
Finance New 18
Financial accounting New 25
Managerial accounting Revision 50
English literature New 20
German New 30
The books that are listed as revisions are texts that ASW already has under contract; these texts are being considered for publication as new editions. The books that are listed as new have been reviewed by the company, but contracts have not yet been signed.The company…
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1
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DEPENDENT VARIABLE
Qc
R- SQUARE
P- VALUE ON F
64
0.8093
0.0001
INDEPENDENTVARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
8.20
4.01
2.04
0.0461
PC
-3.54
1.64
-2.16
0.0357
M
0.64287
0.19
3.38
0.0014
PA
0.7854
0.38
2.07
0.0439
7. If the price of asphalt (PR) decreases by 15, what will happen to the estimated quantity of cement demanded? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
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DEPENDENT VARIABLE
Qc
R- SQUARE
P- VALUE ON F
64
0.8093
0.0001
INDEPENDENTVARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
8.20
4.01
2.04
0.0461
PC
-3.54
1.64
-2.16
0.0357
M
0.64287
0.19
3.38
0.0014
PA
0.7854
0.38
2.07
0.0439
9. Calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
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DEPENDENT VARIABLE
Qc
R- SQUARE
P- VALUE ON F
64
0.8093
0.0001
INDEPENDENTVARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
8.20
4.01
2.04
0.0461
PC
-3.54
1.64
-2.16
0.0357
M
0.64287
0.19
3.38
0.0014
PA
0.7854
0.38
2.07
0.0439
6. If tax revenue per capita (M) increases by 10, what will happen to the estimated quantity of cement demanded? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
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DEPENDENT VARIABLE
Qc
R- SQUARE
P- VALUE ON F
64
0.8093
0.0001
INDEPENDENTVARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
8.20
4.01
2.04
0.0461
PC
-3.54
1.64
-2.16
0.0357
M
0.64287
0.19
3.38
0.0014
PA
0.7854
0.38
2.07
0.0439
10. Write the resulting regression equation. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
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Windies Cricket manufactures Windies supporter jerseys. The quantity q, of thesejerseys demanded weekly is related to the wholesale price per jersey p, by thefollowing equation:? = −0.006? + 15The weekly total cost incurred by Windies Cricket for producing q jerseys is:?(?) = 38? − 0.02?2 + 30,000a. Determine an expression to represent the weekly Revenue functionb. Determine an expression to represent the weekly Profit function.c. Calculate the weekly Revenue when ten dozen jerseys are produced and sold.d. Will Windies Cricket record a loss or profit if they were to produce and sell 2450jerseys?e. If Windies Cricket wishes to maintain a total cost less than $42,000.00, whatrange(s) of Windies jerseys should be produced. f. Calculate the equilibrium price and quantity for Windies jerseys.
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What is this equation used for? What do the variables mean?
Can you give an example how a research study can be applied to this formula? Does it account for control variables ?
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Use the following STATA output to test whether the variable wgt is
significant at 5% level:
Source |
SS
df
Number of obs =
EC 3.
Prob > F
R-squared
MS
392
300.76
0.0000
0.6993
Adj R-squared anba6970
4.2965
388) =
Model Juu16656.4443
Residual 162,54916
5552.1481
388 18.4601782
Total Juu23818.9935
391 60.9181419
Root MSE
Coef.
Std. Err.
P>It|
[95% Conf. Interval]
syl
ena
wat
.2677968
-.012674
-.0057079
44.37096
.4130673
.0082501
.0007139
1.480685
-0.65
-1.54
-8.00
29.97
0.517
0.125
0.000
0.000
-1.079927
-.0288944
-.0071115
41.45979
.5443336
0035465
.0043043
47.28213
_cons
The variable is not significant because p-value is less than 0.05.
The variable is significant because p-value is less than 0.05.
The variable is significant because p-value is less than 0.1.
The variable is not significant because p-value is greater than 0.05
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i need help with this question 8 from my microeconmics assigments. i have already gotten it wrong twice.
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4. The estimation of the model with quarterly car sales in the U.S. from 1975 to 1990
gives:
Source |
df
MS
Number of obs =
64
F( 2,
Prob > F
61) =
12.21
Model
.32720224
2
.16360112
0.0000
Residual |
.817286587
61
.013398141
R-squared
Adj R-squared = 0.2625
Root MSE
0.2859
Total | 1.14448883
63
.018166489
.11575
lqne | cCoef.
t P>|t|
std. Err.
[95% Conf. Interval]
1price
lincome
-.4604611
3.37186
6.89398
-.8280926
.1838504
-4.50
0.000
-1.195724
2.399991
. 4860261
4.94
0.000
1.428121
_cons
5.92543
.4843662
12.23
0.000
4.95688
Based on the parameter estimates, what is the predicted effect of a 10% increase in
price on the number of cars sold? What would be the effect of that price increase on
the value of car sales?
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I need help with c
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not use ai please don't
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Question 4 - Type Your Answers in Space Provided
(a)
An accountant wishes to undertake a cost analysis of electricity consumption of office heating
for various maximum daily temperatures. He recorded the data over a period of 8 random days,
as shown below:
2
3
4
5
6
8
Temp(°C)
Max Electricity Consumption
26
31
25
26
14
20
16
34
35
20
37
24
42
41
40
17
You may use the following Excel print-outs or summary statistics provided to answer the questions.
SUMMARY OUTPUT
SUMMARY STATISTICS
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
n =
8.
0.895
24
0.801
32
0.768
s2x =
48.29
4.862
s?y =
101.71
%3!
Observations
8
Sxy =
-62.7143
Coefficient
Standard
Error
t Stat
P-value
6.575
Intercept
temp(°C)
63.172
9.607
0.000
-1.299
0.264
-4.911
0.003
Find the least squares regression line to predict the electricity consumption from the maximum
temperature.
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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
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please answer the questions on the image attached with work shown, thanks!
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The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2,625 for the production setup. The variable cost is $55 per pair, and each pair sells for $80.
(a)
Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost (C) of producing x pairs of shoes.
C =
(b)
Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes.
P =
(c)
How large must the shoe order be before O'Neill will break even?
x =
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The table to the right contains price-demand and total cost data for the production of projectors, where p is the
wholesale price (in dollars) of a projector for an annual demand of x projectors and C is the total cost (in dollars)
of producing x projectors. Answer the following questions (A) - (D).
(A) Find a quadratic regression equation for the price-demand data, using x as the independent variable.
X
270
360
520
780
The fixed costs are $.
(Round to the nearest dollar as needed.)
ITTI
y =
(Type an expression using x as the variable. Use integers or decimals for any numbers in the expression. Round to two decimal places as needed.)
Use the linear regression equation found in the previous step to estimate the fixed costs and variable costs per projector.
The variable costs are $ per projector.
(Round to the nearest dollar as needed.)
(C) Find the break even points.
The break even points are
(Type ordered pairs. Use a comma to separate answers as needed. Round to the nearest integer as…
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If the error term is correlated with any of the independent variables, the OLS estimators are:
a. biased and consistent.
b. unbiased and inconsistent.
C.
biased and inconsistent.
d. unbiased and consistent.
O a. a
O b. b
О с. с
O d. d
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- solve within 30 minsarrow_forward1arrow_forwardAccording to the following given information how to determine: Production Times (months) 1 9 10 11 12 13 14 15 product of 970 1,180 1,239 1,293 1,350 1,398 1,410 1,480 1,492 1,500 1,520 1,592 1,605 1,660 1,685 (Z unit) A) Break Even-point or points? B) How is to construct the relationship between entire variables through the simple drawing for all above figures and highlighting of Break Even point the drawing? C) Justify your final answer for each line of production.arrow_forward
- Hi hlo Expert Hand written solution is not allowed.arrow_forwardPlease provid the breakdown of coordinates for the graph and other answers with explanation: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- 1-24 A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for business students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs) cost $5 each. The tutor was paid $25 per hour, for a total of $75 for each tutoring session. (a) If students are charged $20 to attend the session, how many students must enroll for the company to break even? (b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility. How would this affect the break-even point?arrow_forwardDEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 Explain the interceptand the coefficients of Pc, M, and PA.arrow_forwardDo not solve list all the X and Y variables, objective function and contraints for the below problem ASW Publishing, Inc., a small publisher of college textbooks, must make a decision regarding which books to publish next year. The books under consideration are listed in the following table, along with the projected threeyear sales expected from each book. Book Subject Type of Book Projected Sales (000s) Business calculus New 20 Finite mathematics Revision 30 General statistics New 15 Mathematical statistics New 10 Business statistics Revision 25 Finance New 18 Financial accounting New 25 Managerial accounting Revision 50 English literature New 20 German New 30 The books that are listed as revisions are texts that ASW already has under contract; these texts are being considered for publication as new editions. The books that are listed as new have been reviewed by the company, but contracts have not yet been signed.The company…arrow_forward
- 1arrow_forwardDEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 7. If the price of asphalt (PR) decreases by 15, what will happen to the estimated quantity of cement demanded? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.arrow_forwardDEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 9. Calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.arrow_forward
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