Evaluate the statistical significance of the estimated, Ask an Expert

Economics

A linear trend equation for sale of the form Qt = a + bt was estimated for the period 1993-2007 i.e. t=1993, 1994, 2007 The results of the regression are as follow:

Dependent variable : Qt, R-Square, F-ratio, P-Value on F

Observations : 15, 0.6602, 25.262, 0.0002

Variable, Parameter Estimate, Standard Error, T-ratio, P-value

Intercept 73.71460, 34.08, 2.16, 0.0498

t 3.7621, 0.749, 5.02, 0.0002

a) Evaluate the statistical significance of the estimated coefficients use 5 percent for significance level Does this equation indicate a significant trend? (6m)

b) Using this equation, forecast sales in 2008 and 2009. (4M)

c) Comment on the precision of these two forecasts. (4m)

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9491020

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question why might a parent company like mcdonalds or

Question: Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald's outlets are owned by the same ...

Question - consider firms in the market for get-rich-quick

Question - Consider firms in the market for get-rich-quick schemes. For this problem, assume get-rich-quick schemes are indivisible (so there can only be 1, 2, 3, etc.). Now, the more schemes there are in the market the ...

Question franchise arrangements involve a number of highly

Question: Franchise arrangements involve a number of highly specific investments on the parts of both the parent company (e.g., McDonald's or Hilton Hotels) and the franchisee (the owner of a particular McDonald's or Hil ...

Question - how does strategic positioning benefit a firm

Question - How does strategic positioning benefit a firm? Discuss the importance of advertising, branding, and the effect of both on the product's demand curve.

Please answer the following four discussion questions1

Please Answer The Following Four Discussion Questions 1. Explain four types of unemployment 2. Explain the advantages and disadvantages of: (a) A flexible exchange rate regime (b) A fixed exchange rate regime 3. Suppose ...

Question principles of macroeconomicsworksheet on keynesian

Question: Principles of Macroeconomics Worksheet on Keynesian Demand Management The economy of Trickstoland is currently producing $450 billion of output, while enduring 12% cyclical unemployment. The natural rate of une ...

Question good x is produced in a perfectly competitive

Question: Good X is produced in a perfectly competitive market using a single input, Y, which is itself also supplied by a perfectly competitive industry. If the government imposes a price ceiling on Y, what happens to t ...

Question the competitive nature of the market influences

Question: The Competitive nature of the market influences labor markets outcomes. A. Explain and show graphically why a firm with monopoly power hires less labor than if it sold its output in a competitive market. B. Exp ...

The economics of cities and regions assignment - case study

The Economics of Cities and Regions Assignment - Case Study - Local Government and Economic Planning Local government and economic planning Background: This assignment asks you to link planning, the economy and local gov ...

Topics - mergers amp acquisition capital structure stock

Topics - Mergers & Acquisition, Capital Structure, Stock Trading etc. Q1. Develop an extensive form game with imperfect information (in which one of the players can be two or more types) that models any stylized economic ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert