Bundle: Managerial Economics: Applications, Strategies And Tactics, 14th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
14th Edition
ISBN: 9781337198196
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter 4A, Problem 1E
a)
To determine
To find: The possibility of the cause of autocorrelation.
a)
Expert Solution
Explanation of Solution
The causes of autocorrelation are:
1. Bias in the data
2. The data is not reliable there must be some change in the data.
b)
To determine
To find: The effect of autocorrelation.
b)
Expert Solution
Explanation of Solution
The results are:
1. two or more independent variables are correlated, i.e., multicollinearity.
2. the function might be sometimes non-linear.
c)
To determine
To find: the affect of autocorrelation on the accuracy of
c)
Expert Solution
Explanation of Solution
- autocorrelation might underestimate the true variance.
- The null hypothesis might be rejected although it is true.
d)
To determine
To find: remedial for autocorrelation removal
d)
Expert Solution
Explanation of Solution
The remedy is to increase the number of observations, find the missing values and estimators although linear is not the efficient estimator.
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Mita, the manufacturer of copiers, has been spending
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What is the coefficient of determination for this regression?
0.874
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We are interested in understanding consumption of pork in the U.S. so we run a
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(standard errors in parenthesis)
CPt = -330.3 + 49.1 In Inct − 0.34 PPt + 0.33PBt
(7.40)
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(0.12)
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DW=0.94
Where
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a. Interpret the partial slope coefficients. Does the sign on the coefficients
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b. Using a two-sided test at the 5% significant level, determine if the partial
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Water is being poured into a large, cone-shaped
cistern. The volume of water, measured in cm³, is
reported at different time intervals, measured in
seconds. A regression analysis was completed and
is displayed in the computer output.
Regression Analysis: cuberoot (Volume) versus Time
Predictor
Coef
SE Coef
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-0.006 0.00017
-35.294
0.000
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0.000018
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Chapter 4A Solutions
Bundle: Managerial Economics: Applications, Strategies And Tactics, 14th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
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