forecast of inflation, Operation Management

Aman work at the Bank, to help customers, including retired people, to plan for the future.  Often the value of pensions does not keep up with inflation.  Hence retired people require a forecast of inflation.  One of the assertions is that changes in Federal Reserve policy can affect inflation.  

    Aman are given data on money and inflation. Money = average annual growth over 5 year periods, and inflation is average annual rate of inflation over 5 year periods.

Period End    Money       Inflation
 1965             9            1.6
1970            7.9            4.2
1975            11.5            8
1980            12            10.5
1985            11             7
1990            7              4.9
1995            2.8           3.8
2000            7.1            3
2005            10.1          2.7

     Do the data support a connection among the rate of enhance in the money supply and inflation?  Using the data on the growth rate of Money and inflation, run a regression of the rate of inflation on the rate of growth of the money supply.  Use Excel Data Analysis.

(1)    Interpret slope (What does the coefficient on the money supply variable tell you)?

(2)    Forecast inflation if money =   8

(3)    What is the meaning of the p-value? Is the regression coefficient significant?

(4)    Interpret the coefficient of determination

(5)     Is faster money growth always associated with higher inflation?

Posted Date: 3/21/2013 2:46:07 AM | Location : United States







Related Discussions:- forecast of inflation, Assignment Help, Ask Question on forecast of inflation, Get Answer, Expert's Help, forecast of inflation Discussions

Write discussion on forecast of inflation
Your posts are moderated
Related Questions
Question : (a) Under what conditions is PERT preferred to CPM in project management ? Illustrate your answer with examples of projects. (b) Several stages are involved in

In a group environment, should leaders be assigned at the beginning of a project or should leaders emerge as the group is working on the project? Outline the positives and negative

Answer the following questions: 1) What is resource over allocation? 2) What is resource levelling? 3) Under what circumstances would you want to manually reso

You have been working for some time at Unique Shoes, a local shoe store that specializes in unusual shoe designs and custom fitting. Currently, customers come to the store to selec

Can anyone give me an example of a preference matrix?

In what ways do you think that scoping projects that are cutting edge or don't have a lot of precedents is a problem, and how do you think a project manager can address this

Which business strategy below does the company Walmart's uses to go global? Elaborated going to China to do business... A) Global standardization strategy B) Localization str

What do you understand by line balancing? what happens if balance doesn''t exists?

Describe a set of circumstances under which you might legitimately consider disciplinary action for a chronic complainer.

Order Winning, Order Qualifying and Order Losing Criteria Hill (1993) introduced the idea that as well as order winning criteria (OWC), there is also order qualifying criteria