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Question:
(a) Distinguish between endogenous and exogenous variables in a simultaneous equation model?
b) Write down two equations which can be solved simultaneously, determine whether they are identified or over-identified and get the reduced form equations.
c) Can OLS be applied to the reduced form equations? Justify your answer.
d) Distinguish between a simultaneous model and a recursive model and show clearly that OLS can be applied to a recursive model.
You purchased your house 5 years ago for $110,000 and based on recent appraisals it can be sold today for $141,000. What effective annual rate of return did you earn?
a rural population (given in thousands) is thought to decline according to the equation p=15e^(-0.1t). if t=0 at the beginning of 1998. calculate the numbers in the population at t
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Mary has a weekly allowance of $24 to spend on soda and coffee. Let 40 cups be the maximum amount of soda she can buy for the money. Let $.40 be the price of 1 cup of coffee. As
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To buy a retirement home, you will need $525,000 in 18 years. If funds can be invested at an effective return of 6 percent a year, how much must you invest today to have the desire
Q. Show example on aggressive working capital policy? With an aggressive working capital policy, a company would hold minimal levels of inventories in order to minimise costs.
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