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a) Explain what is calculated by a correlation coefficient.b) Why do economists commonly find regression a more useful tool than correlation?c) In a sample of 102 men the correlation among age and monthly donations to charity is found to be 0.2.Test whether this correlation is significantly among from zero and comment on your result.
Question: (a) Formulate a VAR with 4 lags and also rewrite it in matrix form, mentioning the limitations of such models. (b) What is the rationale behind introducing lag-dep
Given for a closed economy: C = $20 + 0.50Y D I = $40 G = $10 Y D = Y- T 0 T 0 = $5 Determine: (a) the equilibrium
You are considering a new line of consumer products. You expect revenues of $14 million in each of the next ten years, while expenses are half of revenues (all cash flows are assum
A firm's total revenue (TR) is provided by pq, where p is price and q is quantity sold. Assume the firm is initially selling 1000 units of its product at a
A brief summary of the procedure of maximum likelihood.
Question 1: a) Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations. b) How can we estimate a VAR invol
Ask questia) Summarize the basic tenets of the arguments in thiscase b) Do you agree with main tenets of the arguments in the case? Why? Justify your answer with detailed explanati
Derive marginal benefit of reducing principal balances
The attached Eviews results are for a model who has a professional career (dependent variable = pro (1 if respondent has a professional career, 0 otherwise). The data is the 1979 c
The inverse demand and supply functions for a product are given as: where P is price, Q is quantity and the subscripts d and show demand and supply, respectiv
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