forecast of inflation, Operation Management

Assignment Help:

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?


Related Discussions:- forecast of inflation

Calculating Standard time, ) A time study analyst observes a worker over a ...

) A time study analyst observes a worker over a period of time and calculates that the worker required 90.0 minutes per unit produced. The worker was rated at a 105 percent perfor

Explain what remedies are available to him, Kristina places an order for a ...

Kristina places an order for a cake on Flowers bakery's web site. She then calls the baker to tell him that she will pay him $1000 for the specially designed cake if he will guaran

Find what is the labour productivity per dollar, Klein Karpet cleaned 65 ru...

Klein Karpet cleaned 65 rungs in October, consuming the following resources: Labour: 520 hours at$13 per hour Solvent: 100 gallons at $5 per gallon Machine rental: 20 days at $50 p

What is the number of orders per year if the manager uses, A flower shop us...

A flower shop uses 800 clay pots a month. The pots are purchased at $2 each. Annual carrying costs are estimated at $0.60 per pot per year and ordering costs are $20 per order. The

Explain a serial entrepreneur who has previously started, You are an invest...

You are an investor in small businesses, and you have three business plans on your desk. Choose one of the potential business owners listed. Explain why you think that would be the

Explain the company is expected to maintain growth rate, The Lo Tech Co. ju...

The Lo Tech Co. just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely.

Explain leadership is more important in today''s flatter, Do you think lead...

Do you think leadership is more important in today's flatter, team based, employee empowered organizations? Why or why not?

Explain new plant manager puts high emphasis, Two Industrial engineers (IE)...

Two Industrial engineers (IE) manage two adjacent subassembly lines separated by a buffer with a fixed capacity as shown in the figure below. They are good friends but they like me

Explain inventory tracking systems, Bill of Materials are kept current with...

Bill of Materials are kept current with changes using: a) Inventory Tracking Systems b) Engineering Change Order Systems c) Master Scheduling Systems d) Capacity Planni

Write Your Message!

Captcha
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