Evaluate the statistical significance of the equation

Assignment Help Econometrics
Reference no: EM13188381

Just The Fax, Inc. (JTF) has hired you as a consultant to analyze the demand for its line of telecommunications devices in 35 different market areas. The available data set includes observations on the number of thousands of units sold by JTF per month (QX), the price per unit charged by JTF (PX), the average unit price of competing brands (PZ), monthly advertising expenditures by JTF (A), and average gross sales (in $1,000) of businesses in the market area (I). The results of a regression analysis (with standard errors in parenthesis) are given below.
QX = 300 - 6 PX + 2 PZ + 0.04 A + 0.01 I
(200) (1.8) (0.8) (0.03) (0.004)
R2 = 0.91 S.E.E. = 3.6

(i) Evaluate the statistical significance of the equation as a whole and of each of its coefficients.

Reference no: EM13188381

Questions Cloud

Provide an argument against the proposal : The manager of the company's pension fund is compensated based entirely on fund performance; he earned $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000.
Find the rate at which the distance between the planes : One airplane is approaching an airport from the north at 149 km/hr. A second airplane approaches from the east at 246 km/hr. Find the rate at which the distance between the planes changes when the southbound plane is 27 km away from the airport an..
Find out the the forecasts for 3rd quarter : Using the three quarters moving average, find out the the forecasts for 3rd quarter 2010, 4th quarter 2010, and 1st quarter 2011. Use the given data, actual demand 3rd quarter year 2010 is 260, the actual demand 4th quarter year 2010 is 270, and t..
Find the rate at which water is being pumped : find the rate at which water is being pumped into the tank in cubic centimeters per minute.
Evaluate the statistical significance of the equation : Just The Fax, Inc. (JTF) has hired you as a consultant to analyze the demand for its line of telecommunications devices in 35 different market areas. The available data set includes observations on the number of thousands of units sold by JTF per ..
Explain the initial reaction with copper metal : H2SO4, for the first step instead of concentrated HNO3 . What changes will be observed for the initial reaction with copper metal?
Who is getting the better offer : if steve's bank offers him a savings account paying 5.3 compounded quarterly and jill's bank offers her an account paying 5.28% continuously who is getting the better offer?
Explain when naoh is added to the reaction mixture : When NaOH is added to the reaction mixture, Cu(OH)2 does not immediatly precipitate. What else in the reaction mixture reacts with NaOH before Cu(OH)2 is formed?
What happens to the supply and quantity supplies : Beer and pizza are compliments because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplies, quantity demanded, and the price in the market for pizza.

Reviews

Write a Review

Econometrics Questions & Answers

  How does an expansionary monetary policy work

How does an expansionary monetary policy work? (Describe the steps through which an increase in money supply affects the real GDP). How does fiscal policy work? (Describe the steps through which an increase in G or TR, or a decrease in TX, affects..

  Calculate the regression coefficients

Calculate the standard error of estimate and the standard error of Coefficient Standard error of estimate = Standard error of Coefficient = 4. Make a prediction of Y when X = 64. Prediction y= 5. Calculate a 95% prediction interval when X = 64. Pre..

  Independent variables of a regression equation

Determine which of the following refers to a relatively high correlation among independent variables of a regression equation?

  Computing regression lines and coefficient of squares

Computing regression lines, coefficient of squares, graphing dependent and independent variables using square footage vs home sales.

  How many units should each plant produce to maximize profit

] A perfectly competitive firm faces a market price of $10 for its output X. It own two plants, A and B whose total costs are TC sub A = 10 + 2X + (.25X)2, TC sub B = 15 + .4X + (.1X)2, How many units should each plant produce to maximize profit at t..

  Find the general equilibrium value of the real interest rate

Find the general equilibrium values of the real interest rate, consumption, investment, and the price level.(b)Suppose the money supply increases to 2800. Find the general equilibrium values of the real interest rate, consumption, investment, and t..

  What is the risk (standard deviation)

What is the risk (standard deviation) that this investment manager has assumed in his calculation if it is known that returns are normally distributed with a mean of 5.6%?

  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..

  What is the predicted price of an ocean view unit

A researcher has developed the following regression equation to predict the prices of luxurious Oceanside condominium units, Picture , where Price = the price of a unit (in $thousands), Size = the square footage (in square feet), View = a dummy varia..

  Maximizing total output vs output per worker

You have given the following data about the amount your firm can manufacture per day given the number of workers it hires.

  Income distribution in different standards

Which of the following is not a reason for rising health care costs? Which of the following statements about the way the government measures poverty is correct? Which of the following are explanations for income differences?

  Lnrgdpaus and briefly comment on the graphs

Plot the level and first difference of lnrgdpaus and briefly comment on the graphs and obtain the sample correlograms of the level and first difference of lnrgdpaus for 20 lags. What do they suggest to you?

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