Question A1 The following regression results were obtained from a regression of Total Crime Rates in the US (Y) on Life expectancy of South Africa (X), Y = -24569 +628.9X R 2 = 0.929 (−6.03) (9.04) What do you understand by the term 'spurious regression'? Are the reported results evidence of a spurious regression? Explain fully.
Q: Which of the following would be an advantage of using a Project Management software application…
A: Project management software help in planning,collaboration,organise resources,reporting,project…
Q: The table contains a random selection of items from the National Account of a country. Item UDD…
A: We are authorized to answer three subparts at a time, since you have not mentioned which part you…
Q: The General Hospital is evaluating new office equipment offered by three companies. Cost Annual…
A: When an unequal life alternative is given and we have to perform increment internal rate of return…
Q: Thandi has R700 to spend on hamburgers and transport. A humburger costs R35 while a car trip is R25.…
A: The budget line implies the combination of two goods that consumers can buy at the given income and…
Q: Price/costs 150 140 130 120 110 100 90 BO 70 60 50 40 30 20 10 0 299 AC 123456789101112131415…
A: The equilibrium price is the main price where the plans of customers and the plans of makers concur…
Q: Long-run economic growth can be achieved with Group of answer choices A rightward shift in the…
A: Economic growth is the situation when an economy is able to generate more output or income than the…
Q: (20 ,10) = (20 ,30 = 8 کره = 055 = x
A: Pareto optimal allocation and price ratio for the corresponding competitive equilibrium. Pareto…
Q: i.Methods of Theoretical Economics - State Deduction and Induction
A: "Since you have asked multiple question,we will solve first question for you.If you want specific…
Q: Assuming that the is 0.50? O $7,000 O $5,000 O $3,000 O $4,000
A: Equilibrium Income=$4000 full employment income =$8000 full employment income is more than…
Q: 1) Derive the ISLM model and explain how general equilibrium in the goods and money markets is…
A: Hey champ, Welcome to this platform. Here you will get answers with better quality in minimum time.…
Q: In the short run, the Phillips Curve indicates a(n): inverse relationship between inflation and…
A:
Q: How do fiscal and monetary policies compare in terms of timing?
A: Fiscal policy is Revenue and Expenditure policy of the government. The management of the revenue…
Q: 1. The data in the following table represents budget figures for the nation of Harmonia for 2016.…
A: given Federal government expenditure…
Q: Input either "increase" or "decrease" where relevant: A decrease in the price of a complementary…
A: Complementary goods are used simultaneously to satisfy needs. The Decline in the price of…
Q: As discussed in class, when a single firm sells two complementary goods, they should lower their…
A: Substitute goods are two items that may be swapped for one another, such as tea and coffee. When the…
Q: hich of the following is the BEST example of monopsony employer? a.Hiring of book keepers by…
A: A monopsony happens when there is a sole or a predominant employer in a work market. This implies…
Q: In your own words , summarize the main idea of 4 selected macroeconomic schools of thoughts , to…
A: Classical school of thought According to the classical school of economics, the individual interest…
Q: Assume ample reserves in the Wakandan banking system. The Wakandan Central Bank has set the deposit…
A: given deposit rate = 3.25% bank rate = 3.75$
Q: U7
A: The macroeconomic health of an economy can be identified by examining the three main goals of…
Q: Discuss the importance of studying macroeconomics from business perspectives.
A: Economics is the study of allocating the scare resource in the most efficient way. The study of…
Q: Question 6: Discuss the following statements: a. 'Stabilisation policy can be used to help the…
A:
Q: 4. An economy's Planned Aggregate Expenditure (PAE) is given by the formula PAE = 3,400+ 0.6Y in…
A: (a) Given: PAE = 3400 + 0.6Y Autonomous expenditure = 3400 Induced expenditure = 0.6Y
Q: Farmer Jones and Farmer Smith graze their cattle on the same field. If there are 20 cows grazing in…
A: Nash equilibrium is a concept in game theory when the player maintains their original idea despite…
Q: An engineering firm purchased a second hand truck for P 530,000 and paid P 15,000 for freight and…
A: Given:- Purchase price=P530,000 Freight charge(Included in purchase price)=P15,000 Life=10 years…
Q: Consider the following bank. Cash in Vaults $25 Its deposits at Central Bank-$275 Loans it has made…
A: Bank reserves are the bare minimum of cash that a financial institution must hold on hand to…
Q: ar-17 n-17 p-17 ec-17 ar-18 in-18 p-18 ec-18 ar-19 n-19 p-19 ec-19 ar-20 5.9 5.6 5.4 5.6 5.5 5.3 5.0…
A: Introduction According to the Phillips curve, the unemployment rate and inflation are inversely…
Q: Consider a monopoly with a constant marginal cost of 10 that faces the following inverse demand…
A: Please find the answer below. MONOPOLY: A monopoly is a situation with a single seller in the…
Q: Select one: O a. O b. O c. O d. Between 2020 and 2021 the IS curve and LM curve both shifted to the…
A: IS-LM Curve The IS-LM model, also known as the investment-savings and liquidity preference-money…
Q: In 38 low-income and emerging economies with GDP per capita below $25,000 tracked by World Bank, the…
A: ANSWER
Q: The wage of manufacturing workers will fall. The demand for manufacturing workers will remain…
A: Labor Market: A market that maintains the 2 opposite groups related to the supply and demand of…
Q: Which of the following statements is incorrect? The demand curve facing a competitive firm is…
A: Under the perfectly competitive market, the firm is a price taker, not a price maker. therefore,…
Q: Question For each sentence below describing changes in the tangerine market, discuss whether the…
A: The minimum measure of remuneration that an employer is expected to pay wage workers for the work…
Q: If the inverse demand function a monopoly faces is p(Q) and its cost function is C(Q), show the…
A: Firm is in a monopoly Inverse demand function is p(Q) Total cost function is C(Q) Specific tax…
Q: Many legal structures are designed to either encourage or limit trade. True or false?
A: Trade The voluntary exchange of commodities or services between various economic entities is…
Q: Unique answer asap thanks
A: We know that The money demand refers to the total amount of all the money demanded in the economy.…
Q: Energy-intensive industries (e.g. iron and steel) are price insensitive as it relates to energy…
A: * Demand side : price insensitive demand => price elasticity of demand is less than 0 => if…
Q: a. which of the minimum wage hikes would be ineffective? W₁ W2 W3 W4 W5 b. which of the minimum wage…
A: When in the labor market, the market determined wage (by the intersection of the labor demand and…
Q: are the two reasons for unfavorable terms of trade in semi-developed countrie
A: A developing nation is a sovereign state with a lesser created modern base and a lower Human…
Q: 1) How did the Keynesian perspective address the economic market failure of the Great Depression?
A: British economist John Maynard Keynes changed economic theory by proposing alternatives to the…
Q: In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the…
A: Present value is the amount of a normal revenue source or income limited at the current pace of…
Q: Question 35 Suppose there are 3 firms in a market. The largest firm has sales of $60 million and…
A: The Herfindahl-Hirschman Index (HHI) is used at the marketplace to analyze the market concentration…
Q: You buy a share of stock that pays $5 in dividends for the next 5 years and nothing after that. If…
A: The formula for the present value is: P = FV(1 +R)tP: Present ValueFV: Future ValueR: Rate of…
Q: Question 8. In the absence of externalities, allocative efficiency is achieved at the Q where TR =…
A:
Q: Find the balance of trade if exports of good is 270 and the imports of goods is 185.
A: Balance of trade is define to be as the overall difference between the value related to the country…
Q: Consider the following NFG: X A (a,b) B (1/2a, 2b) (2a, b) Y (1/2a, 2b) Assume that a > 0,b>0. Which…
A: Let us assume that player 1 chooses strategy A with probability p and strategy B with probability…
Q: The table below shows the maximum quantities of two goods that each country can produce. If the…
A: Given Wakanda can produce either 8 tons of Vibranium or 2 tons of gold whereas Zamunda can produce…
Q: Suppose you have a 1,200,000 US dollar payable coming due in June and that the spot today is .98…
A: Foreign exchange: It is the level of exchanging of currency of one's economy in relation to another.…
Q: The following table shows the real output demanded and supplied at various price levels in a…
A: We have given the real quantity demanded and real quantity supplied at a different price level in a…
Q: A cup of Starbucks Macchiato will cost you almost $6, and a similar cup at McDonald will cost about…
A: consumer surplus is the amount of benefit which occurs when consumer pay less price for products…
Q: What is a circular flow model
A: Meaning of Economics: The term economics refers to the situation under which there remain…
Step by step
Solved in 3 steps
- How should I interpret the coefficients on a regression with a naural log of a dependent variable? Ex: Ln(wage)=B1+B2Experience+B3Male...+UiHow do you interpret the R-squared obtained from running this regression?A scatter plot shows data for the cost of a vintage car from a dealership (y in dollars) in the year a years since 1990. The least squares regression line is given by y-25,000 + 500z. Interpret the y intercept of the least squares regression line. Select the correct answer below O The predicted cost of a vintage car from a dealership in the year is 820.000 O The predicted cost of a vintage car from a dealershpin the year 1090 is 85,000. O The predicted cost of a vintage car from a dealershp in the year 1990 is sse. The yintercept should not be interpreted.
- 10. Residual analysis Consider a regression of y on several independent variables, and the resulting predicted values of the dependent variable. The residual for the ith observation Consider a data set for a large sample of professional basketball players. Each observation contains the salary, as well as various performance statistics such as points, rebounds, and assists for each player. Suppose a regression of salary on all performance statistics is run, and the residuals are obtained. The player with the lowest (most negative) resid represents which of the following? (Assume the regression reasonably predicts salaries in most cases.) The most fairly paid player relative to her on-court performance The most overpaid player relative to her on-court performance The highest-paid player, regardless of her on-court performance The most underpaid player relative to her on-court performanceThe following data relate the sales figures of the bar in Mark Kaltenbach's small bed-and-breakfast inn in portland, to the number of guest registered that week: week guests bar sales 1 16 $330 2 12 $270 3 18 $380 4 14 $315 a) The simple linear regression equation that relates bar sales to number of guests(not to time) is (round your responses to one decimal place): Bar sales = [___]+[___]X guestsIf we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the dependent variable?
- You estimated the following regression. What value would you predict for Y, if X = 46? (Round your final answer to zero decimal places.) Source | SS df MS Number of obs = 452 -------------+---------------------------------- F(1, 450) > 99999.00 Model | 451909533 1 451909533 Prob > F = 0.0000 Residual | 1435457.34 450 3189.9052 R-squared = 0.9968 -------------+---------------------------------- Adj R-squared = 0.9968 Total | 453344990 451 1005199.53 Root MSE = 56.479 ------------------------------------------------------------------------------ Y | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- X | 12.27466 .0326116 376.39 0.000 12.21057 12.33875 _cons | 69.67934 3.949949 17.64 0.000…You are interested in how the number of hours a high school student has to work in an outside job has on their GPA. In your regression you want to control for high school standing and so you run the following regression: GPA = 3.4 0.03 * HrsWrk - 0.7 * Frosh - 0.3 * Soph +0.1 * Junior (1.1) (0.013) (0.23) (0.14) (0.08) where HrsWrk is the number of hours the student works per week, and Frosh, Soph, and Junior are dummy variables for the student's class standing. a) If you include a dummy variable for seniors, that would cause a Hint: type one word in each blank. For the rest of questions, type a number in one decimal place. b) The expected GPA of a Sophomore who works 10 hours per week is c) The expected GPA of a Senior who works 10 hours per week is d) If Dom and Sarah work the same number of hours per week, but Dom is a Junior and Sarah is a Freshman. Dom is expected to have a higher GPA than Sarah. e) Suppose you rewrite the regression as: problem. GPA = ₁HrsWrk + ß2Frosh + B2Soph +…As an auto insurance risk analyst, it is your job to research risk profiles for various types of drivers. One common area of concern for auto insurance companies is the risk involved when offering policies to younger, less experienced drivers. The U.S. Department of Transportation recently conducted a study in which it analyzed the relationship between 1) the number of fatal accidents per 1000 licenses, and 2) the percentage of licensed drivers under the age of 21 in a sample of 42 cities. Your first step in the analysis is to construct a scatterplot of the data. FIGURE. SCATTERPLOT FOR U.S. DEPARTMENT OF TRANSPORATION PROBLEM U.S. Department of Transportation The Relationship Between Fatal Accident Frequency and Driver Age 4.5 3.5 3 2.5 1.5 1 0.5 6. 10 12 14 16 18 Percentage of drivers under age 21 Upon visual inspection, you determine that the variables do have a linear relationship. After a linear pattern has been established visually, you now proceed with performing linear…
- 5 We are given a sample of n observations which satisfies the following regression model: yi = β0 + β1xi1 + β2xi2 + ui , for all i = 1, . . . , n. This model fulfills the Least-Squares assumptions plus homoskedasticity. (a) Explain how you would obtain the OLS estimator of the coefficients {β0, β1, β2} in this model. (You do not need to show a full proof. Writing down the relevant conditions and explain)Explain the OLS Estimator in Multiple Regression in detail?1. Suppose that you have following data: Variable Description CEO salary measured in thousands of $ Firm's sale measure in millions ofS Return on equity in percent Salary sales roe *Return on equity is a measure of financial performance calculated by dividing net income by shareholders' equity. Your estimated regression is given by log (salary) = 4.322 + 0.276 log(sale) + 0.0215roe - 0.0008roe?, R = 282, n = 209. (324) (0.033) (0.0129) (0.00026) a) Is the effect of all independent variables statistically equal to 0? b) Interpret the coefficient on log(sale). c) Interpret the effect of roe on log(salary). • Without more information, your interpretation of the effect of roe on log(salary) should include answers to these sub-question. Should the roe be included in this model? il. Comment on relationship between roe and log(salary): is it U-shaped or inverse U-shaped? What is the turning point? How would you interpret this point? Plot log(salary) vs roe. v. ii. iv. Compute predicted value…