Differentiate between linear and log-linear model, Econometrics

Assignment Help:

Problem:

(a) Differentiate between linear and log-linear model.

(b) Distinguish between type I and type II errors.

(c) (i) A bulb manufacturer claims that its bulbs last 36000 hours, on average. A consumer believes that it is actually less and plans to test this by assessing the lifetime of bulbs on a sample of 35 bulbs and tests these assumptions at significance level of 0.05. If the standard deviation of bulb life is 4000 hours, what is the probability of a type II error if the actual mean lifetime of the bulb is 33000 hours?

(ii) Given that the significance level is 0.005, what is the probability of a type II error if the actual mean lifetime of the bulb is 32500 hours?


Related Discussions:- Differentiate between linear and log-linear model

Cournot duopoly model, i) Briefly distinguish between the Cournot duopoly m...

i) Briefly distinguish between the Cournot duopoly model and that of Stackelberg.     ii) Suppose the  inverse  market demand curve for  a telecommunications equipment is P = 10

Fnd the optimal hedge ratio, Hedging ?nancial risk is a very important prac...

Hedging ?nancial risk is a very important practical issue in economics.  In this exercise, you will derive your optimal hedge ratio, assuming that you are an expected utility maxim

Explain what is meant by the term regression, (a) Explain what is meant by ...

(a) Explain what is meant by the term regression. (b) Describe the justification for the inclusion of a disturbance term in a regression analysis. (c) With appropriate exa

Standard divation, demand for tea, Y, are assumed to be affected by income ...

demand for tea, Y, are assumed to be affected by income of students, X. A simple linear regres-sion analysis was performed on 20 observations and the results were: Independent vari

Explain the meaning of regression, Problem 1: a. Explain the meaning o...

Problem 1: a. Explain the meaning of regression and its usefulness. b. Distinguish between GARCH (1, 1) and asymmetric GARCH. c. Clearly explain the two tests used for

What will happen to quantity demanded, a. If 10,000 two-liter bottles of Pe...

a. If 10,000 two-liter bottles of Pepsi are currently being demanded in your community each month, and the price increases from $1.90 to $2.10 per bottle, what will happen to quant

Course work, estimate the determinants of demand of a firm or several firms...

estimate the determinants of demand of a firm or several firms within a particular industry or country

Production, Factor that affect the volume of production

Factor that affect the volume of production

Expected values and variances, What is the expected value and variance of y...

What is the expected value and variance of y = 3x+2 knowing that E(X) = 8 and var(X) = 4.

Time-series econometrics, Suppose time-series data has been generated accor...

Suppose time-series data has been generated according to the following process: where t is independent white noise. Our main interest is consistent estimation of Φ from r

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