If a Winters' model for new car dealer sales, comes up with four seasonal indices with values of Q1 = 0.95, Q2 = 1.04, Q3 = 1.05, and Q4 = 0.96, the following can be interpreted: Multiple Choice Q1 sales are lower because of Q2 sales. Q1 sales are usually about 5 percent below an average quarter. Q1 sales are usually about 5 percent above an average quarter. Q1 sales are higher because of Q2 sales.
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If a Winters' model for new car dealer sales, comes up with four seasonal indices with values of Q1 = 0.95, Q2 = 1.04, Q3 = 1.05, and Q4 = 0.96, the following can be interpreted:
-
Q1 sales are lower because of Q2 sales.
-
Q1 sales are usually about 5 percent below an average quarter.
-
Q1 sales are usually about 5 percent above an average quarter.
-
Q1 sales are higher because of Q2 sales.
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- You and your research partner want to use Instrumental Variable analysis to write an econometrics paper and find causal estimates. Your partner argues that because the residuals and the instrument are uncorrelated, the exogeneity requirement is satisfied. What do you tell your research partner: a) You agree, the exogeneity requirement is satisfied by construction b) You agree, the exogeneity requirement is satisfied by their demonstration c) You disagree, you would need the results of the White Test to make this conclusion d) You disagree, the exogeneity requirement cannot be tested as we do not observe the error terms e) You cannot make any conclusions with the current informationIndicate whether the statement is true or false, and justify your answer.Suppose an individual prefers to drink beer during college but enjoys winemore during middle age. This is a classic example of time-inconsistent preferences.Consider Scenario A from the previous question. State whether you made a Type I error, a Type II error, or the correct conclusion. Children in your community have on average less than 5.2 books at home, and you reject the hypothesis that they have greater than or equal to 5.2 books. Children in your community have on average less than 5.2 books at home, and you fail to reject the hypothesis that they have greater than or equal to 5.2 books. Children in your community have on average greater than or equal to 5.2 books at home, and you reject the hypothesis that they have greater than or equal to 5.2 books.
- Neuroeconomics attributes time-inconsistency to (A) high levels of the oxytocin hormone; (B) the quasi-hyperbolic discounting of future consumption; (C) the two distinct systems (spontaneous System 1 and calculating System 2)of decision making; (D) risk aversion.After a careful statistical analysis, the Chidester Company concludes the demand function for its product is Q = 500 - 3P + 2Pr + 0.1I where Q is the quantity demanded of its product, P is the price of its product, Pr is the price of its rival’s product, and I is per capita disposable income (in dollars). At present, P = $10, Pr = $20, and I = $6,000. What is the implicit assumption regarding the population in the market?A teacher observes that the mitterm grades of students in the class varies depending on “the number of classes that the student takes”, “the difficulty of the assignments”, and the “stress experienced by the student”. She assigns to you the task of doing a research project on this and wants you to do the following: a. Give the project a suitable title b. What is the research question? c. Clearly label the variables (dependent and independent) d. Develop three hypotheses
- Write down the two decision variables of a household or the two goods (including both market and non market goods) in one period RBC model.( TRUE OR FALSE help me find the true or false questions ) 1. In economic statistics and Econometrics, we do the same thing.( ) 2. As same in regression analysis, variables in relation analysis are all random variables.( ) 3. Known as residual, "i is an estimate of u , the random disturbance term.( ) 4. The slope coefficient of the log-log model measures the elasticity of Y with respect to X.( ) 5. In regression of standardized variables, the intercept term is always zero.( ) 6. The underlying theory may suggest a particular functional form.( ) 7. The disturbance term u is assumed to follow normal distribution.( ) 8. White test is used to check if there exists multicollinearity in the disturbance term of a regression function.( ) 9. Dummy variable can be used to test the stability of a regression model just as the function of the Chow Test.( ) 10. Where there is autocorrelation in the u , the OLS estimators are not BLUE estimators any more.( )As a manager of a small software retailing company, you are concerned with projected profit next year. While profit can be determined as the difference between sales and maintenance cost, or in symbols, P = S - M, where P is profit, S is sales, and M is maintenance cost including technical support. It is argues that when sales goes up so does maintenance cost because the cost of technical support will go up. Further, it is measured that the correlation between S and M is 0.8. Now given the figure that sales next year is expected to be $300 thousand with standard deviation of $4 thousand and maintenance cost is expected to be $150 thousand with standard deviation of $6 thousand, what would be the expected profit and its standard deviation you will include in your report?
- Assumptions of rationality are violated because Choose one: A. both low-probability events and high-probability events are underanticipated. B. low-probability events are overanticipated whereas high-probability events are underanticipated. C. low-probability events are underanticipated whereas high-probability events are overanticipated. D. both low-probability events and high-probability events are overanticipated.In the Markowitz portfolio optimization model defined in equations (8.10) through (8.19) in the text, the decision variables represent the percentage of the portfolio invested in each of the mutual funds. For example, FS = 0.25 in the solution means that 25% of the money in the portfolio is invested in the foreign stock mutual fund. It is possible to define the decision variables to represent the actual dollar amount invested in each mutual fund or stock. Redefine the decision variables so that now each variable represents the dollar amount invested in the mutual fund. Assume an investor has $50,000 to invest and wants to minimize the variance of his or her portfolio subject to a constraint that the portfolio returns a minimum of 10%. (a) Reformulate the model given by (8.10) through (8.19) based on the new definition of the decision variables. min ((R1 − R)2 + (R2 − R)2 + (R3 − R)2 + (R4 − R)2 + (R5 − R)2) s.t. R1 =…The application which provides a way of revising conditional probabilities by using available information and provisions for revising conditional probabilities with other information that is useful for management decision making is called? Select one: a. Bayes’ theorem. b. overinvolvement ratios. c. probability rules. d. empirical formula.