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

Proportion of income spent on a commodity, Q. Proportion of Income Spent on...

Q. Proportion of Income Spent on a Commodity? Another characteristic that has an impact on the elasticity of demand for a commodity is proportion of income that consumers use u

Question, Calculate point elasticity of demand for demand function Q=10-2p ...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Factors influencing demand for a product, Factors influencing demand for a ...

Factors influencing demand for a product These are broadly divided into factors determining household demand and factors affecting market demand . Factors affecting hou

Cost, define scarcity and opportunity cost..

define scarcity and opportunity cost..

Shifts in demand curve, Shifts in demand curve Shifts in the demand cu...

Shifts in demand curve Shifts in the demand curve are brought about by the changes in factors like taste, prices of other related commodities, income etc other than the price

Factors influencing supply curve - goals of the firm, Goals of the firm ...

Goals of the firm How much is produced by a firm depends on its objectives.  A firm which aims to maximise its sales revenue, for example, will generally supply a greater quant

Why do managers need to know economics?, Economics contributes a great deal...

Economics contributes a great deal with towards the performance of managerial duties and responsibilities. Just as biology donates to the medical profession and physics of engineer

Marginal revenue (mr), Marginal Revenue (MR) This is the increase in T...

Marginal Revenue (MR) This is the increase in Total Revenue resulting from the sale of an extra unit of output.  Thus, if TR n-1 is Total Revenue from the sale of (n-1) units

Short-term policies to cure balance of payment deficits, Short-Term Policie...

Short-Term Policies Deflation is a policy of reducing expenditure with the intention of curing a deficit by reducing the demand for imports.  This reduction of expenditure m

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