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- Q3. You are working as a researcher in an economic Institute, you want to study the relation between the Unit sales as a Dependent variable and the following independent variables (selling expenditure, advertising, competitive price) As shown in the following model Unit Sales + = b0+b1 Exp + + b2 Adv t b3 t+ compt + Ut After collecting your data, and estimating your linear regression over the data, you got the following regression equation comp t Unit Sales t = -10.5 - 0.51 Exp + + 0.09 Adv 3.05 b3 t + (2.45) (-1.5) t- value (4.2) (2.94) R² = 0.24 F- Value 0.33 ' 1- What is the economic meaning of the coefficient b0 (-10.5) 2- Describe the meaning of R² and its value, F - Value 3- What do you think about the Model as a whole, with F, R2 values....is it significant or not ....explain your answerAn economic research centre has published data on GDP and Demand for refrigerators as given below:Year 2011 2012 2013 2014 2015 2016 2017GDP (billion) 20 22 25 27 30 33 35Refrigerator 50 60 80 80 90 100 120(a) Estimate regression equation R= a+by, where R= No of refrigerator sold and Y= GDP.Forecast demand for refrigerator in the year 2018 and 2019. The research centre has projected GDP for 2018 and 2019 at Rs. 38 billion and Rs. 40 billion respectively.The diagram shows what happened to the consumption of lamb in the UK over the period 1974– 2015. How can we explain this dramatic fall in consumption? One way of exploring this issue is to make use of a regression model, which should help us to see which variables are relevant and how they are likely to affect 140 130 120 110 100 90 80 70 60 50 40 30 20 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 Note: Data from 2015 based on end of financial year. Source: Based on data in Family Food datasets UK consumption of lamb: 1974–2017 The following is an initial model fitted to annual data for the years 1974–2010. QL = 144.0 – 0.137PL – 0.034PB + 0.214PP – 0.00513Y + e (1) where: QL is the quantity of lamb sold in grams per person per week; PL is the ‘real’ price of lamb (in pence per kg, 2000 prices); PB is the ‘real’ price of beef (in pence per…
- The following is the macro model of the economy for next year. (i) Find theparametric solutions for the predicted GDP (Y ) and for the predicted netexport (X): (ii) Verify that the 3rd equation is satisÖed by your solutions. Y=C+G0+X C=a+b(Y-t0Y) X=k-mYAssume that the relationship between new car prices (P) and population (N) in Southern California is given by: P = 13 N0.80 Based on your knowledge of non-linear regressions and logarithm properties, what is the effect on new car prices if the population in Southern California increases by 5%? An increase of 4 dollars An increase of 4 percent. An increase of 13 percent. An increase of 17 percent.== 2. Consider an IS/LM model of an economy with the following equations:C = 300+ 0.6Ydl 100 5iG 200TR = 200T 200T = 0.1YL = 0.4Y 30iM/P = 500(a) Using the above data, derive the equation for the IS schedule. (b) In this example, what is the equation for the LM schedule? (c) Using simultaneous equations calculate the equilibrium level of income and interestrates. Sketch the IS/LM equilibrium position. (d) What are the values of the monetary policy multipliers with respect to income andinterest rates? If the money supply is increased by 30, what are the new market clearing income and interest rate levels?
- Refer to the quarterly value of Gross Domestic Product (GDP in billions of current dollars) in China from 2021q1 to 2023q4. You are going to analyze GDP by an additive model with a trend component (Tt) and a seasonal component (St), and forecast GDP using the seasonal decomposition method. Year Quarter t GDP (Y+) CM(4) Detrended 2021 1 1 24920 2 2 28284.9 3 3 29128.8 ? ? 4 4 32589.9 ? ? 2022 1 5 27034.4 ? ? 2 6 29244.7 ? ? 3 7 30794.2 ? ? 4 8 33399.1 ? ? 2023 1 9 28442.3 ? ? 2 10 30829.3 ? ? 3 11 31997.6 4 12 34789 a. Use an CM(t|4) [centered moving average of order 4] series to estimate the GDP series from t=3 to 10. b. Calculate the seasonal factors for each quarter with a zero mean, by first obtaining the detrended revenue series from t = 3 to 10. c. In this seasonal decomposition method, why is it necessary to use moving averages to process time series data first? How about using moving average of order 5?-ks Consider following regressions: Y = a₁ + a₂X + U Y*=b₁ + b₂X + V Where: Y* = mY, X*=nX 102 Show that: b₂ = ₂ × n 100Suppose you have run four regression models: A, B, C, and D. You are going to make a decision on which one to use just based on the adjusted r² value. Here are the adjusted r² values for each model: A: 0.71 B: 0.57 C: 0.65 D: 0.76 Which regression model would you choose based on the adjusted r²? OD since it has the highest adjusted r² value B since it has the lowest adjusted r² OC since it has an adjusted r² between the adjusted r² of regressions B and D. Either B or C since they have the lowest adjusted r²
- Economics Consider the following estimated model based on quarterly data of Australian manufacturing exports from January 2015 to December 2019. EXP: = -5.38+0.191Y, + 0.0216FDI_+2.61t t-1 Where EXP, Y and FDI represent manufacturing exports (in thousand dollars), output (in thousand dollars) and foreign direct investment (in thousand dollars), respectively. The following is an excerpt of the actual data. What is the predicted exports in the fourth quarter of 2015? Period Y FDI Third quarter of 2015 57234 344 Fourth quarter of 2015 60031 385 Question 13 options: A11478.41 thousand dollars. B11525.50 thousand dollars. C1151.92 thousand dollars. D11520.17 thousand dollars.(1.4) Consider the following IS-LM model: I Y=C+I+G C=100+0.4(Y-T) I= 150 +0.2Y - 4,000r r = 0.01 with G = 200 and T = 100. (a) Derive the IS curve and draw it in an appropriate diagram. (b) Calculate the equilibrium values of Y, C, I and r. (c) What is the impact of decreasing government spending to G' = 180 in terms of the new equilibrium value Y"? (d) Suppose the central bank decides it wants to counteract the restrictive fiscal policy. What exactly (i.e. we look for graphical and numerical answers) can the central bank do in order to keep equilibrium output at the value obtained for Y in (b)?For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd |= 220 – 25i G 240 %3D TR 150 T= .2Y L= .1Y– 31 = 125 The equations for the IS and LM (to two decimal places) are OY= 2168.4 - 69.5i andY = 30i + 1250 OY= 2168.4 - 69.5i and Y = 31 + 125 Y= 780 - 25i and Y = 30i + 1250 Y= 2168.4 + 69.5i and Y = 30i – 1250 ミ1a E