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In this question you will consider the impact on the building industry of the earthquake. Two construction and materials indices have been provided for the analysis. If your family name begins with letters from A to L you will use the FTSE index and if your family name begins with letters from M to Z you will use the Dow Jones index.
(a) Estimate a market model using the construction and materials index in place of a share. Include any extra variables required for the test(s) in part (c)
(b) Carry out error tests on your model and take any corrective measures that are required.
(c) Carry out one or more statistical tests to determine if the model has changed since the earthquake.
Note that if in this or the previous question you decide that your results are unreliable through problems that you could have fixed, you will receive very low marks indeed.
definition of total revenue,marginal revenue,average revenue
Theory of consumer behavior
tce
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