What is Nature of a Dummy Variable?

Q: A kids' organization sold 570 bars last year at $ 2.55 per candy bar. Research has suggested that…

A: (Only the first three parts have been solved).    In this case, first the dd function that is faced…

Q: (a-) Graph the function  Y= 36/X , assuming that X and Y can take positive values only. Next,…

A: It is given that, Y = 36/X It is a function of graphical geometry.

Q: What is it meant by the Laffer Curve ? Graphically Illustrate

A: Tax is a compulsory payment that is imposed by the government either directly or indirectly on the…

Q: If you were studying the following relationship, which variable would be exogenous and which would…

A: Endogenous variables are those variables whose values are determined in the model. It is also called…

Q: what does it mean to have a linear correlation? Give an example of one.

A: Correlation can be defined as a linear relationship between two variables. The value of correlation…

Q: Which of the following pairs is most likely to exhibit an inverse relationship?a. The amount of time…

A: The demand curve is downward sloping, which shows the inverse or negative relationship between price…

Q: Explain the theoretical value of the parameter Alpha in other words what does the value of Alpha…

A: Alpha is the significance level.It is probability for rejecting the null hypothesis,when it is true.…

Q: 1. You work for a beer company. Your boss wants to increase yearly sales by 5000 liters. To reach…

A: 1) It is given that the price and the demographic composition of market is constant. Hence these two…

Q: write a short note about the following variables and support your answers by giving examples for…

A: Variable cost (VC) is the cost which changes with change quantity produced or change in output. It…

Q: What is meant by dummy variable and how dummy variables are constructed?

A: A dummy variable (aka, an indicator variable) is a numeric variable that represents categorical…

Q: How would you interpret (1) an upward sloping curve and (2) a downward slope curve in a two variable…

A: Upward sloping curve shows positive relationship between the two variables and downward sloping…

Q: What are the assumptions of say's law

A: Say's Law states that supply creates its own demand.

Q: 10.An elastic demand curve is one for which: the absolute change in price is smaller than the…

A: 10.An elastic demand curve is one for which: An elastic good’s price elasticity of demand is greater…

Q: which is the most preferred level of individual’s choice for public expenditure relating it with…

A: Utility means the total satisfaction a consumer or individual gets by consuming a certain amount of…

Q: Q 2.A write a short note about the following variables and support your answers by   giving…

A: TFC: These are the fixed costs that incur permanently. These do not change with change in the level…

Q: Which of the following are monotonic transformations? Please explain. 1) u = v² 2) u = lnv 3)u =…

A: The measure that depicts a way of transformation of a number set into another set that tends to…

Q: Explain three basic sources of deviationsfrom PPP.

A: Purchasing power parity implies that money in one country can purchase equal quantity of goods in…

Q: one: remain unchanged shift outwards movement upwards along the same curve d. shift inwards e.…

A: Capital intensive implies that the useful cycle that needs a high level of interest in fixed assets…

Q: Give an economic relationships ( with one response and one explanatory variable) in which…

A: Correlation refers to the degree of association between two or more variables. When the variables…

Q: The demand for goods and services is essentially influenced by several things, state and explain and…

A: Consumers are the people who create the demand for goods and services in the market as per their…

Q: Are the variables Y and X inversely related or directly related? What is the value of Y if b=10,…

A: Inversely related: Variables are said to be inversely related when increase and decrease in one…

Q: What is the variable that adjusts the effect of the independent variable on the dependent variable…

A: There are 2 variables,dependent and independent variables.

Q: Make a hypothetical data table and try to make interrelationships between AC, MC and AVC for ten…

A: Let's take the hypothetical data and curve out the tables and the graph of the TVC, TFC, TC, AFC,…

Q: What is Heteroscedastic? And is there a way to fix data in case of heteroscedasticity presence

A: Heteroscedasticity is termed as hetero means different and scedacticity means scatter. Thus…

Q: what relationship does IS curve plot? explain in words and graphically, why IS curve slops downward

A: In Keynesian economics, the equilibrium interest rate and income level are determined by the IS-LM…

Q: If X causes Y, then X is the dependent variable and Y is the independent variable. Group of answer…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: What are the Least Squares Assumptions? also explain the usage of these Assumptions?

A: The Least Squares Assumptions and its usage are mentioned below: Regression model is a linear model…

Q: Write the quantity equation and explain it.

A: The quantity equation is given as : MV = PT

Q: If A is the dependent variable and B is the independent variable, then a change in A results in a…

A: A variable is a quantity that may change within the context of a mathematical problem or experiment.…

Q: Explain the relationship between these two formulas:             Y = C + I + G + EX – IM…

A: Gross Domestic Product: It refers to the final value of all the goods and services that are produced…

Q: What happens to the Qd of Sugar when price of gur increases?

A: The overall amount payable within a firm to manufacture a given amount of a commodity or provide a…

Q: (b) Rank the three economic variables from most important to least important. Provide one relevant…

A: Desclaimer:- as you posted multiple questions by default we are solving the first one    Economic…

Q: explain Cohen & Plog's Model

A: The touristry trade has become one among the quickest growing industries and one among the biggest…

Q: Consider the output shown in Table 4.1. Which of the predictors has the greatest impact on the…

A: Here the question is about the dependency of variable which is directly related to the slope of the…

Q: The relationship between a consumer’s income and the quantity of X, he consumes is given by the…

A: The relationship between a consumer’s income and the quantity of X, he consumes is given by the…

Q: HDI vs GNI formula to create scatterplot

A: HDI also called Human Development Index is a measure of average achievements of various human…

Q: der the relatiönship y = f(x). In this relationship: O a. y is called the independent variable and x…

A: y=f(x) implies that y is a function of x. The function can be increasing or decreasing. If y is an…

Q: Q. under the gravity model, what is country-time fixed effect? and what is the benefit of using…

A: Economic integration, method during which 2 or a lot of states during a generally outlined region…

Q: Discuss in detail the effects of the following factors on the position of IS curve. 1- Wealth;…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: ow to test the presence of autocorrelation.

A: AC {"Autocorrelation"} is described as a kind of serial correlation. It is the connection between…

Q: what does (D1/P0) represent?

A: This formula represents the following stated in the next step.

Q: Explain which of the following is the independent variable and which is the dependent variable for…

A: In economics, variables are considered as dependent and independent according to their importance in…

Q: Four different beverages are sold at a fast-food restaurant: soft drinks, tea, coffee, and bottled…

A: A variable can be nominal or categorical, also called dummy.

Q: Answer any 1 from a and b below Explain the shape of AS? What shifts AS

A: The curve that depicts various quantities of goods being supplied by producers at different price…

Q: What is a downward sloping

A: In Economics demand curve is downward sloping curve. Law of Demand states that other things being…