ECO220Y1 Chapter 18: ECO220Y1 Chapter 18 Notes

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10 Mar 2014

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To make ci"s, the sd of the residuals needs to be used: the sd of the residuals pools information across all the individual distributions of y at each x value, and pooled estimates are appropriate only when they combine information for groups with the same variance, normal population assumption. Y= 0+ 1 x + : steps are as, make a, if the data are straight enough, fit a regression and find the residuals, e, follows to check the conditions: scatterplot of the data (is it linear?) and predicted values, y , if time series, plot the residuals against time to check independence, make scatterplot of the residuals against x or the predicted values. Se(b1)= se s x n 1: easy to see that as se, as n and sx. H 1: 1 10 using the standardized estimated regression slope, t n 2= b1 1. Ci for the regression slope b1 t n 2 se (b1)

Related Questions

Starting with the data fro Problem 6 and the data on the price of a related commodity for the years 1986 to 2005 given below, we estimated the regression for the quantity demanded a commodity (which we now reliable (Q x), on the price of the commodity (which we now reliable (Qx), on the price of the commodity (which we now live Px), consumer income (which we now label Y), and price of the related commodity (Pz), and we obtained the following results.

Qx=121.86-9.50Px+ 0.04Y - 2.21P

(-5.12) (2.18) (-0.68)

R2=0.9633 F=167.33 D-W=2.38

The year 1986 1987 1988 1989 1990
Pz($) 14 15 15 16 17
The year 1991 1992 1993 1994 1995
Pz($) 18 17 18 19 20
The year 1996 1997 1998 1999 2000
Pz($) 20 19 21 21 22
The year 2001 2002 2003 2004 2005
Pz($) 23 23 24 25 25

(b) Evaluate the regression results. 1.P15(b) is to evaluate the above regression results in terms of the signs of the coefficients, the statistical significance of the coefficients, and the explanatory power of the regression (R²). The number in parentheses below the estimated slope coefficients refer to the estimated t values. The rule of thumb for testing the significance of the coefficients is if the absolute t value is greater than 2, the coefficient is significant, which means the coefficient is significantly different from 0. For example, the absolute t value for Px is 5.12, which is greater than 2; therefore, the coefficient of Px, (-9.50) is significant. In order words, Px does affect Qx. If the price of the commodity X increases by $1, the quantity demanded (Qx) will decrease by 9.50 units.

apricotpig911

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

crimsoncamel287

Need assistance with these problems!

1. The following is a linear programming formulation of a labor planning problem. There are four overlapping shifts, and management must decide how many employees to schedule to start work on each shift. The objective is to minimize the total number of employees required while the constraints stipulate how many employees are required at each time of day. The variables X₁ - X₄ represent the number of employees starting work on each shift (shift 1 through shift 4).
Minimize X₁ + X₂ + X₃ + X₄
Subject to: X₁ + X₄%u2265 12 (shift 1)
X₁ + X₂%u2265 15 (shift 2)
X₂ + X₃%u2265 16 (shift 3)
X₃ + X₄%u2265 14 (shift 4)
all variables %u2265 0

Find the optimal solution using QM.
How many workers would be assigned to shift 1? (Points : 3) 12
13
0
none of the above