Problemanswer using stata and send completed stata file, Ask an Expert

Economics

Problem

Answer using STATA and send completed stata file showing all commands with the completed answers. The data set is attached.

Data setDowJones.dtacontains Dow Jones Industrial Average (dj) from April 19th2013 to April 18th2018.

1. Plot the data.

2. Find the autocorrelations for 5 lags

3. According to plots and autocorrelations given above, is DowJones Industrial Average (DJ) stationary? Explain your answer.

4. Run an AR(2) model for this series.

5. Write the AR(2) model above in equation form (use 3 decimal points only)

6. Now try an AR(1) model in changes for dj.

7. Write the model above in an equation form (use 3 decimal points)

8. Now try AR(2) model.

9. Write the AR(2) model in equation form using 3 decimals only.

10. In order to find out whether AR(1) or AR(2) models the changes in Dow Jones Industrial.

Average better, calculate both predicted values and errors. (i.e. using the results from (f)- (i), calculate the predicted change on April 18th2018 and compare both to the actual change)

Attachment:- Dowjones.rar

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92801742

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

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 Microeconomics Expert