Statistical signigicance, Managerial Economics

Assignment Help:
A study of 86 savings and loan associations in six northwestern states yielded the following cost function.
I''ve been given the following data;
C=2.38- .006153Q1 + .000005359Q2 + 19.2X1
we were given the t-stats in same order.
2.84 2.37 2.63 2.69
C= ave. operating expense ratio, expressed as a percentage and defined as total operating expense ($million) divided by total assets ($million) times one hundred percent.
Q= output, measured by total assets ($million)
X1= ratio of the number of branches to total assets ($million)
We need to know:
A. which variables is (are) statistically significant in explaining variations in the average operating expense ratio?
B. What type of cost-output relationship (e.g., Linear, quadratic or cubic) is suggested by these statistical results?
C. Based on these results, what can we conclude abut the existence of economies or diseconomies of scale in saving and loan associations the northwest.

Related Discussions:- Statistical signigicance

Managerial Economics helps create utility for the Society. , Managerial Eco...

Managerial Economics helps create utility for the Society.

Cross-elasticity of demand, Cross-elasticity is the measure of responsivene...

Cross-elasticity is the measure of responsiveness of demand for a commodity to the changes in price of its substitutes and complementary goods. For example, cross-elasticity of dem

Perfectly elastic supply, Perfectly Elastic Supply Supply is said to b...

Perfectly Elastic Supply Supply is said to be perfectly or infinitely elastic if the price is fixed at all levels of demand.  The demand curve has been shown in the above diag

Limitations of uneven distribution of income and wealth, Limitations of Une...

Limitations of Uneven Distribution of Income and Wealth Unlike the historical experience of the now developed countries, the rich in contemporary Third World Countries are not

What is risk and production analysis, What is Risk and Production analysis ...

What is Risk and Production analysis Risk analysis:  Various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.

Functions of budget, Functions of the Budget The budget fulfils three ...

Functions of the Budget The budget fulfils three main functions: To raise revenue to meet government expenditure The government of a country provides certain se

Price, break event point

break event point

Help w/ Question, You have opened your own word processing service. You hav...

You have opened your own word processing service. You have already bought a special computer needed for word processing and paid $5,000 for it. However, due to the cost changes in

Pilgrim Bank Case, Your discussion assignment this week is associated with ...

Your discussion assignment this week is associated with the Pilgrim Bank case. Using the attached file, answer the following questions: A. Is there a difference in profitability ac

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