Find estimated percentage point change in rdintens

Assignment Help Macroeconomics
Reference no: EM13179570

The variable rdintens is expenditures on research and development (R&D) as a percentage of sales. Sales are measured in millions of dollars. The variable profmarg is profits as a percentage of sales.

Using the data in RDCHEM.RAW for 32 firms in the chemical industry, the following equation is estimated:
rdintens = .472 + .321 log(sales) + .050 profmarg
(1.369) (.216) (.046)
n = 32, R^2 = .099.
(i) Interpret the coefficient on log(sales). In particular, if sales increases by 10%, what is the estimated percentage point change in rdintens? Is this an economically large effect?
(ii) Test the hypothesis that R&D intensity does not change with sales against the alternative that it does increase with sales. Do the test at the 5% and 10% levels.
(iii) Interpret the coefficient on profmarg. Is it economically large?
(iv) Does profmarg have a statistically significant effect on rdintens?

Reference no: EM13179570

Questions Cloud

Explain what factor is one reaction faster than the other : Assume a temperature of 298 K and 1 M concentration. By what factor is one reaction faster than the other?
Explain the mole fraction of benzene in the solution : The mole fraction of benzene in the solution is 0.590. Assumeing ideal behavior, calculate the mole fraction of toluene in the vapor above the solution.
Define the standard gibbs energy change : the Standard Gibbs energy change associated with this oxidation reaction is ca. 0. kJ/g.
State the numbers and kinds of atoms : Write chemical equations for the reaction of fluorine with the following substances, making sure that the numbers and kinds of atoms are the same on both sides of the equations. If no reaction occurs, write noreaction
Find estimated percentage point change in rdintens : The variable rdintens is expenditures on research and development (R&D) as a percentage of sales. Sales are measured in millions of dollars. The variable profmarg is profits as a percentage of sales. Using the data in RDCHEM.RAW for 32 firms in the..
State the basis of a simple chemical test : Select the reagent from the list below that could be the basis of a simple chemical test that would distinguish between each of the following:
Dealing with calcium chloride as opposed to the chemical : Suppose we are dealing with calcium chloride as opposed to the chemical in the video. If a solution contains 70 g of calcium chloride per 100 g of water at 25 degrees Celsius
Explain recrystallized some impure benzoic acid and isolated : He was surprised that most of the white solid melted sharply between 121 and 122 C but that a small amount remained unmelted even at temperatures above 200 C. Explain this behavior.
Compute the amount of each of the 12 payments : A person arranges to repay a a$1000 bank loan in 10 equal payments at a 10% annual interest rate. Immediately after his third payment he borrows $500, also at 10% annual interest rate. When he borrows the $500, he talks the banker into letting him..

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Child of a wealthy family is deciding work mooch off

A child of a wealthy family is deciding either to work or not work also mooch off her parents. Asume that she is offered a job which pays.

  Compute mean, standard deviation and cv of sales

Compute mean, standard deviation & CV of sales. The demand for MICHTEC's products is related to the state of the economy.

  As per much of the rest of the world remained characterized

As per much of the rest of the world remained characterized by low rates of economic growth.

  Questions on aggregate supply and long-run equilibrium

What are the advantages of Fed increasing interest rates if the GDP gap is positive?

  Table on income per person and unemployment rate

Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.

  Strategic human resources management implications

Explain how have society and workplaces changed and what are strategic human resources management implications of these changes for organizations?

  Speculation that tax deductions like as the one

There has been some speculation that tax deductions like as the one allowed for interest on home mortgages will be eliminated or altered.

  Illustrate what would happen to general

Illustrate what would happen to general and specific training in labor markets.

  Calculate the interest rate

Derive the expression for the LM schedule in the form i= f(Y), when the money demand function is Md = 680 + 0.8Y - 20i, and the money supply function is M^S = 880.

  Impact of expansionary monetary policy in case of liquidity

Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..

  Computing profit maximizing quantity

A firm uses a single plant with costs C = 160 + 16Q + .1Q 2  and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?

  Assume bill and hillary notice prices are higher in high

Assume Bill and Hillary notice prices are higher in high rent districts. Bill says it's because high rents cause high prices. Hillary says it's because high prices cause high rents. How do I explain who is right and why.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd