Econ2206 Exam Paper

6. Although you are basically satisfied with the analysis thus far, you are concerned about the

results from the model were both accurate and reliable. The multiple R and the R

Refer to the above table. Suppose the government commands each firm to reduce its emissions by 1 ton each and allows these two firms to trade pollution permits. If a 1-ton credit is sold for $175, the total cost for both companies combined to reduce emissions by a total of 2 tons could be as low as:

The bank rate is the interest rate at which the Bank of Canada stands ready to lend reserves to chartered banks. The banker 's deposit rate is the interest rate that the Bank of Canada pays banks on their deposits at the Bank of Canada. Changes to these rates by the Bank of Canada typically spread to other interest rates and therefore will influence the amount of lending done by the banks.

Question 5 If the relevant population is 268 million people and the number of people in the labor force is 148 million, the labor force participation rate is:

Analysis – An analysis was carried to understand if there is a relationship between the

Because of the method of monthly data collection, absolute randomness could not be obtained; however, it was decided that 5 iterations was sufficient because the sixth iteration showed a decrease in the quality of the residual plots. The first test performed was the p-value test of the individual variables. A p-value is the probability, ranging from 0 to 1, of obtaining a test statistic similar to the one that was actually observed. The only input that did not have a p-value less than 0.05, which was the chosen significance level, was the “Number of Walmarts” variable; the number of Walmarts has no specific effect on the output, property crime rate. The R2 of the analysis, or the coefficient of determination, provides a measure of how well future outcomes are likely to be predicted by the model. R2 values range from 0 to 100% (or 0 and 1) and the

Referring to Figure 6.2.3 and 6.3.3, it was proven that our model has problems that the sample data used does not represent the whole population. Therefore, this is one of the flaws in our research. A more constructive suggestion to eliminate this problem would be to extend the research with a larger sample size with longer time horizon. And if the sample size is large enough, the time series issue can be neglected.

Model | PRATIO | PNFI | PCFI | Saturated model | .000 | .000 | .000 | Independence model | 1.000 | .000 | .000 | NCP Model | NCP | LO 90 | HI 90 | Saturated model | .000 | .000 | .000 | Independence

4b) Are there any significant correlations between the variables? If so, explain which variables are correlated, and describe the nature of the correlation (i.e., positive or negative).

This assessment will be an analysis of graphed data and changes in supply and demand for three economic problems. Problem A involves production possibilities for consumer and capital goods, problem B is an evaluation of changes in supply and demand equilibrium, and finally, problem C involves pricing with relevance to supply and demand. Successful completion of this assessment demonstrates proficiency in; applying theories, models, and practices of economic theory, analyzing solutions with support from relevant data, resources, references, and economic principles, analyzing graphed and circular

In this model, since there are only 9 observations and 4 independent variables, the critical values of dl and du when N=15 was used from the appendix. The dl = 0.69 and du = 1.97. The Durbin-Watson statistic of this model is 1.42, which places in within the interval of [0.69, 1.97]. This means the result is inconclusive; we can neither reject the null hypothesis nor accept it. Such result could be caused by the variables and other factors that are not explained by the chosen independent variables.

Ho is equal to B1 = 0 and Ha is equal to B1 ≠0. We will reject Ho if the F value is greater than or equal to F alpha. Since the F value is equal to 278.72 and is greater F alpha, we reject Ho and conclude that a significant relationship exists between the time and passengers.

The result of heteroskedasticity test done for Model II is also shown in Table 5.13 below. The null hypothesis of no heteroskedasticity cannot be rejected this time too. This result is the same as the preveous model’s result and the post-regression test results are valid.

In terms of independent variables, by referring to the Appendix, figure 1 reveals the summary of the sample; it also