Reference no: EM13184116
Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2006-2013 (the time variable goes from 1 to 32). The variables D1, D2 and D3 are , respectively, dummy variables for the first , second, and third quarters (e.g., D is equal to 1 in the first quarter and 0 otherwise). Q1= a+bt+c1D1 +c2 D2 + c3 D3
The results of the estimation are presented here:
Dependent Variable: QT R-SQUARE F-RATIO P-VALUE ON F
OBSERVATION: 32 0.9817 361.133 0.0001
PARAMETER STANDARD
VARIABLE ESTIMATE ERROR T-RATIO P-VALUE
INTERCEPT 51.234 7.16 7.15 0.0001
T 31.127 0.524 5.97 0.0001
D1 -11.716 2.717 -4.31 0.0002
D2 -.1.424 0.636 -2.24 0.0985
D3 -17.367 2.112 -8.22 0.0001
A. At the 5 percent level of significance perform t- and F-tests to check for statistical significance of the coefficients and the equation. Discuss also the significance for the coefficients and equation in terms of p-values. For a level with 27 (32-5) t = 2.052 a:t=7.15>2.052 statistically significant at 5%. b:t5.97>2.052statistically significant at 5%. C1 / t/ = /-4.31/> 2.052statistically significant at 5%.
B. Calculate the intercept in each of the four quarters. What do these values imply?
C. Use this estimated equation to forecast sales in the four quarters of 2014.
|
What are the equilibrium price and quantity
: If the monopolist is left unregulated, what are the market price and quantity, the monopolists profit, consumer surplus, producer surplus, total surplus, and dead weight loss. If the monopolist is forced to produce where P = MC, what are the eq..
|
|
Explain bovine serum albumin is a biochemically
: Bovine serum albumin (BSA) is a biochemically useful protein. A 0.225 gram sample of bovine serum albumin is dissolved in water to make 0.117 L of solution,
|
|
What is the average annual rate of growth of real gdp
: This is for a Macro class I am taking a test prep and I need like a step by step guide as to how i can do this using excel (the data must be found online) I apreciate as much help as possible! Question 1- Using a spreadsheet program, download the..
|
|
Explain specific metric unit
: When working NMR questions, solutions maunuals say that the peaks are 1.0 spaces long or 5.5 spaces long.
|
|
Calculate the intercept in each of the four quarters
: Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2006-2013 (the time variable goes from 1 to 32). The variables D1, D2 and D3 are , respecti..
|
|
Explain the dimensions of a typical atom
: How would this computed ? compare with the dimensions of a typical atom? (-1 if much smaller, 0 if about the same magnitude, +1 if much bigger)
|
|
How the government is increasing the minimum wage
: Assume you are the owner of a small cafe that employs 15 people, 10 of whom are front-line, unskilled workers, and currently paid the minimum wage. The state government is considering increasing the minimum wage. As a business owner, would you su..
|
|
Computes the area of a rectangle
: Create an object oriented application with C# that computes the area of a rectangle, and the area and the volume of a cuboid.
|
|
Leadership and organizing-sensemaking in action
: In this week's 'Leadership and organizing: sensemaking in action' article by Pye, the chief executive (CE) in the case took an approach to change that resulted in his being terminated. Was he too focussed on his preeminent 'position' as a formal lead..
|