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The relationship between Y and X is given by Yi=alpha+beta xi+nui where nui follows classical assumptions. Consider the following set of data and answer the questions. Y 1 2 3 4 5 X 8 6 9 12 10 a) Estimate parameters of the model from the following data by using OLS method. b) What is the estimate of error variance in the above case? c) Find the value of R square for the above data.
Consider the market for taxi service in a city. Explain, by using supply and demand curves, how each of the following actions will affect the market. (Consider each case separately) A. Bus drivers go on strike. B. Bus fares increase after a strike by..
Cost of a part increases by 3$ every 6 months. If the cost for the first semiannual period is expected to be $85, what is the present worth of the cost for a 4-year time period at an interestrate of 1% per month?
Describe the output level where average variable costs are minimized. Determine the output level where marginal costs are minimized.
Assume the United States has the following consumption information: GDP=Income $4000, $6000,$8000,$10000,$12000; Consumption $4500,$6000,$7500,$9000,$10500. Also the economy has G=$1100, I=$404, and Xn=$15. Unemployment in the economy is currently 5...
1. economics is the study of the principles governing the allocation of scarce means among competing ends when the
What does "the amount of a nation's output" mean exactly? Does it increase even if government expenditure goes up as a reaction to a disaster?
What is economics? Why is economics considered a social science? What role does economics play in your personal and professional lives?
A company has an investment project that would cost $40 million today and yield a payoff of $58 million in 4 years. Should the firm undertake the project
Discuss one (1) recent price change that you have noticed while visiting your local supermarket. Determine whether or not the price change that you identified was a result of a change in either supply or demand.
Ryan expects to deposit $1,000 now, $3,000 four years from now, and $1,500 six years from now in an account that is earning 12% per year compounded semi annually through a company-sponsored saving plan. What amount can he withdraw ten years from now?
If the cost for the first semiannual period is expected to be $85, what is the present worth of the costs for a 4-year time period at an intrest rate of 1% per month?
In 2013, American Airline wa charging $ 2,386 for round trip, non-stop and unresticted ticket between Boston and Dallas, but the price has been cut in half to $ 1, 698. (1) What can you say about the price elassticity of business travel damand on tho..
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