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Use the Salkever indirect method to compute forecasts and their standard errors for the logarithmic demand function for your category of expenditure. Add dummy variables to the last four observations and hence obtain the prediction errors for these years, given a regression based on the first 32 observations. Subtract these from the actual outcomes to obtain the forecasts. Derive a confidence interval for the forecast for 1994.
Bundling is not always superior to offering (and pricing) items separately. Consider a telecommunications firm that offers both phone service and high-speed internet. It has two consumers (named Talker and Surfer) who differ in the willingness to ..
What are the specific assumptions that underlie the production possibilities curve? What would be the cost of more food if the economy is at point C? What would be the cost of producing more machinery?
When the more current observations are more relevant to estimate of next period than previous observations, the naive forecasting method to employ is
The final exam is now available, and the student must do current research and use critical-thinking in responding to the question below
in the counry of economica the total labor force consists of 10000 workers 400 of these workers are unemployed and this
calculate the present value of the stream of services.
Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is U(S,T) = 2 ST. What is her marginal utility from shoes
ECON10132/ECON20292 Further Statistics. The tensile quality of a steel billet can be measured by its α- content. Define a suitable discrete random variable to represent the price of a tonne of steel
calculate the demand elasticities for the shifted points.
For what values of a is he risk averse, risk neutral, and risk loving? From now on, assume that a = 1/2. Johnny owns a house that would cost $100,000 to replace should it ever be destroyed by fire.
Income is currently 600,000 unemployment is 5 percent, and there are signs of coming inflation. You rely on ur research assistant for specific numbers. He tells you that potential income is 564,000 and the mpe is .5. a)The government wants to elim..
a farmer buys a new tractor for $146,000 and assumes that it will have a trade-in value of $92,000 after 10 years. the farmer uses a constant rate of depreciation to determine the annual value of the tractor.
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