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Questions: Read the Gasoline Demand Case and answer the following questions. Your answers should provide clear and unambiguous recommendations. Please provide explanations for your answers and any outputs that you feel are needed to support your argument.
1. Calculate a 95% confidence interval for the average gasoline consumption of a household.
2. Calculate a 95% confidence interval for the average gasoline consumption of a household: (a) in an urban area; (b) consisting of a young and single person.
3. Do you agree with the client executives' claim regarding the average household consumption for the two targeted segments (urban households and the young, single households)? Why or why not?
4. Assume both proposed advertising campaigns cost the same. If only one campaign is to be launched, which of the two campaigns would you recommend launching? Why?
5. You will not learn anything more about campaign costs before the recommendation deadline, but still have to provide an unambiguous and unconditional recommendation. What would be your recommendation to the client regarding whether or not to launch both campaigns simultaneously? Why?
Design a simple econometric research project
Multiplicative decomposition method
The Australian government administers two programs that affect the market for cigarettes.
Solve the forecast model
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type
Determine when a competitively produced product generates negative externalities in production, the industry will,
Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.
M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.
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