BUEC 232 Lecture 3: Lecture 3

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amberbeaver997

23 Jan 2019

School

Simon Fraser University

Department

Business Economics

Course

BUEC 232

Professor

Andrew Flostrand

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BUEC 232 Lecture 2: Lecture 2

BUEC 232 Lecture 3: Lecture 3

BUEC 232 Lecture 4: Lecture 4

Document Summary

Buec232 lecture 3: average (approximately) of squared deviations of values from the mean of a sample data series. Sample standard deviation: most commonly used measure of variation, shows variation about the mean, has the same units as the original data. Coefficient of variation: measures relative variation, always in percentage (%, shows variation relative to mean, can be used to compare two or more sets of data measured in different units. S is the sample standard deviation: a datum with a z score above 3. 0 or below -3. 0 is considered an outlier . Measures the amount of asymmetry in a distribution. Measures the relative concentration of values in the center of a distribution as compared with the tails. If the data distribution is approximately bell-shaped (normal), then the interval: 1 contains about 68% of the values in the population or the sample. 2 contains about 95% of the values in the population or the sample.

Related Questions

1. You are given only three quarterly seasonal indices and quarterly seasonally adjusted data for the entire year. What is the raw data value for Q4? Raw data is not adjusted for seasonality.

Quarter Seasonal Index Seasonally Adjusted Data

Q1 .80 295

Q2 .85 299

Q3 1.15 270

Q4 --- 271

2. One model of exponential smoothing will provide almost the same forecast as a liner trend method. What are linear trend intercept and slope counterparts for exponential smoothing?

A. Alpha and Delta

B. Delta and Gamma

C. Alpha and Gamma

D. Standard Deviation and Mean

3. When performing correlation analysis what is the null hypothesis? What measure in Minitab is used to test it and to be 95% confident in the significance of correlation coefficient.

A. Ho: r = .05 p < .5

B. Ho: r = 0 p >.05

C. Ho: r ? 0 p?.05

D. Ho: r = 0 p?.05

In decomposition what does the cycle factor (CF) of .80 represent for a monthly forecast estimate of a Y variable?

A. The estimated value is 80% of the average monthly seasonal estimate.
B. The estimate is .80 of the forecasted Y trend value.
C. The estimated value is .80 of the historical average CMA values.
D. The estimated value has 20% more variation than the average historical Y data values.

5. A Wendy's franchise owner notes that the sales per store has fallen below the stated national Wendy's outlet average of $1,368,000. He asserts a change has occurred that reduced the fast food eating habits of Americans. What is his hypothesis (H1) and what type of test for significance must be applied?

A. H1: u ? $1,368,000 A one-tailed t-test to the left.
B. H1: u = $1,368,000 A two-tailed t-test.
C. H1: u < $1,368,000 A one-tailed t-test to the left.
D. H1: p < $1,368,000 A one-tailed test to the right

6. As the sample size from a population increases, for a given level of significance what happens to the null hypothesis rejection region and size of the t-table value?

A. The rejection region and the t-table value generally gets smaller for sample size below 31.
B. The rejection region gets larger and the t-table value generally gets smaller for sample sizes below 31.
C. The rejection region remains unchanged while the t-table value gets smaller for all sample sizes.
D. The zero mean hypothesis region gets larger and the t-table value gets larger as well for sample sizes below 31.

7. You obtained autocorrelation LBQ value of 18.58 for the 12^th lag from a data sample. Are the data significantly correlated at the lag examined or not? You want to be 95% confident in your answer.

A. Yes. The data are significantly correlated through the 12th lag.
B. No. The data are not significantly correlated through the 12^th lag.

C. No. Only the 12 lag period is not correlated.

D. You cannot tell since the number of sample observations is not provided.

E. The p-value is above .05 so the data is correlated.

8. Sometimes forecasters get lazy or forgetful and do not check the significance of XY data correlations and use the X variable to forecast Y. What is the result of this?

A. Type 2 error
B. Autocorrelation error
C. Type 3 error
D. Type 1 error

9. Do error measures indicate the statistical significance of forecast model variables?

A. Yes. They move in the same direction as statistical significance.
B. Yes. As error measures decrease the variable significance increases.
C. No They indicate only the magnitude of estimate error.
D. No. They indicate only the statistical significance of a forecast or fitted values.

10. In exponential smoothing what is the weight of the alpha coefficient for a time series data observation from the 3^rd previous period if the original alpha value is set at .8?

A. The weight cannot be calculated since the data observation is not given.
B. The weight is zero since the alpha value is set relatively high.
C. .548
D. .0064

11.Given the data series below for variables Y (Monthly Inventory Balance) and X (Monthly Sales) are they significantly correlated at the 95% confidence level and how can you tell?

Ending Inv. Bal. Y		Monthly Sales X
1544		5053
1913		5052
2028		7507
1178		2887
1554		3880
1910		4454
1208		3855
2467		8824
2101		5716

A. Yes. The correlation coefficient is .873 that is greater than .05.
B. Yes. The correlation p-value is .002 which is less than .05.
C. No. The correlation coefficient is above the p-value.
D.No. The correlation p-value is greater than the 95% confidence level.

12. You have forecast the sales for your company for the last 12 months and the forecast residuals are shown below. Are these residuals to be considered random?
Residuals

-24

-348

-892

-62

-378

-489

-342

490

578

198

A. Yes, since the residuals randomly vary in magnitude.
B. Yes since the residuals are positive and negative and vary in magnitude.
C. No, since the residuals are stationary and vary in magnitude.
D. No, since the residuals indicate positive slope.

13. Given the residuals in problem 12 above what is the RMSE for the forecast?

A. -101.0
B. 411.8
C. 169603
D. 220.1

14. Which form of exponential smoothing can result in a na

TABLE 66 Stock Prices and Consumer Prices

CITY
Y = Rate of Change, Stock Prices, Percent Per Year
X = Rate of Change, Consumer Prices, Percent Per Year

CITY	Y	X
A	5	4.3
B	11.1	4.6
C	3.2	2.4
D	7.9	2.4
E	25.5	26.4
F	3.8	4.2
G	11.1	5.5
H	9.9	4.7
I	3.3	2.2
J	1.5	4
K	6.4	4
L	8.9	8.4
M	8.1	3.3
N	13.5	4.7
O	4.7	5.2
P	7.5	3.6
Q	4.73.	6
R	8	4
S	7.5	3.9
T	9	2.1

Table 66 gives data on percent change per year stock prices (Y) and consumer prices (X) for a cross section of 20 cities.

******************* answer in "SAS format" please********************* (if possible)

1) Plot the data in scattergram

2) Regress Y on X and examine the residuals from this regression. What do you observe?

3) Since the data for city(E) is unusual, repeat the regression in (2) dropping the data on city(E). Now examine the residuals from this regression. What do you observe?

4) If on the basis of the results in (2) you conclude that there was heteroscedasticity in the error variance but on the basis of the results in (3) you reverse your conclusion, what general conclusions do you draw?

State whether the following statements are true or false. Breifly justify your answer:

5) When autocorrelation is present, OLS estimators are biased as well as inefficient;

6) The R squared values of two models, one involving regression in the first-difference form and another in the level form, are not directly comparable.

7) In the presence of heterscedasticity the usual OLS method always overestimates the standard errors of estimators.

8) If a regression model is mis-specified (e.g., an important variable is ommitted), the OLS residuals will show a distinct pattern.

redcamel374

Question 1

Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?

		Test marketing and price experiments
		Analysis of historical data.
		Direct consumer surveys.
		Expert opinion.

Question 2

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?

		When the product being marketed is relatively new.
		When the level of economic activity can have a significant effect on the demand for the firm's output.
		When the product can be packaged with a variety of price and quality combinations.
		When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive.

Question 3

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

		conjoint analysis.
		contingent valuation.
		the hedonic estimation technique.
		a direct consumer survey.

Question 4

All of the following are limitations of direct consumer surveys except:

		the possibility of response biases because survey respondents may not want to reveal their true preferences.
		the possibility that the type of questions asked may unintentionally bias the respondent's answers.
		the likelihood that respondents will deliberately and systematically mislead interviewers.
		the possibility that consumers' responses may not reflect their actual behavior in the market place.

Question 5

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

		Expert opinion.
		Test marketing.
		Analysis of historical data.
		Conjoint analysis.

Question 6

Data collected on a sample of individuals with different characteristics at a specific point in time are called:

		panel data.
		cross-section data.
		time series data.
		none of the above.

Question 7

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

		Test marketing.
		Conjoint analysis.
		Expert opinion.
		Analysis of historical data.

Question 8

An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market is called:

		non-price experiments.
		focus groups.
		price experiments.
		none of the above.

Question 9

Data collected on the same observation unit at a number of points in time are called:

		panel data.
		time series data.
		cross-section data.
		none of the above.

Question 10

A measure of how much the coefficient would vary in regressions based on different samples is called:

		F-statistic.
		standard error of the estimated coefficient.
		t-statistic.
		partial F-statistic.

Question 11

The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called a(n):

		t-test.
		F-test.
		multicollinearity test.
		autocorrelation test.

Question 12

Regression analysis that analyzes the relationship between one dependent variable and several independent variables is called:

		cluster analysis.
		correlation analysis.
		multiple regression analysis.
		simple regression analysis.

Question 13

The ratio of the regression coefficient to its standard error is called:

		F-statistic.
		t-statistic.
		coefficient of determination.
		partial F-statistic.

Question 14

The coefficient of determination will range between what values?

		-1 and +1
		0 and 1
		-3 and +3
		none of the above

Question 15

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

		confidence interval.
		logistic regression.
		prediction interval.
		none of the above.

Question 16

The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to

		2.5
		7.5
		12.5
		10

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BUEC 232 Lecture 3: Lecture 3

BUEC 232 Lecture 2: Lecture 2

BUEC 232 Lecture 3: Lecture 3

BUEC 232 Lecture 4: Lecture 4

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