6. The following two regression models are Probit and Logit respectively: Pr(Y=1|X)= Pr(Y=1|X)=F(B+B (Bu + B₁ x X₁ + B₂ x X2) xXr+ B₂ × X2) (a) what functions do and F represent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 1?
Q: Explain how can all people in a certain country (including higher leaders in such country) achieve a…
A: A low-carbon, resource-efficient, and socially inclusive economy is referred to as a "green…
Q: Which of the following best describes the term annual health insurance deductible? A. the amount…
A: A deductible is a sum that a policyholder needs to pay before the insurance agency begins paying.…
Q: The price of a Xbox1 is $399, and you were ready to purchase one. You happened to get your paycheck…
A: Consumer surplus is defined as the difference between the ability to pay of consumer and the amount…
Q: Explain, with the aid of a graph, the effect of an increase in income on the equilibrium price and…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Why are there two measures of GDP.
A: The gross domestic product (GDP) is that the most commonly used indicator of an economy's size…
Q: The aggregate production function exhibits diminishing constant increasing negative returns to…
A: Aggregate production function shows the relationship between the total physical productivity depend…
Q: Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar…
A: Here MPC = 0.75 And MPS = 0.25 Multiplier = 1 / MPS = 4 Now, Increase in government spending = 250…
Q: The income elasticities of demand for movies, dental services, and branded clothing have been…
A: The income elasticity of demand measures by how much the quantity of a decent or service changes…
Q: A decrease in consumption caused by a factor other than a change in the price level a. shifts the AD…
A: Aggregate demand basically refers to the total quantity of demand for all completed products and…
Q: Nash equilibrium can be defined as the competitive outcome where _____ A. all firms set prices equal…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in…
A: Ans. The monopoly market is a market where a single seller produces all units of the output of the…
Q: Can the Philippines benefit from the UN Sustainable Development Goals?
A: * ANSWER :-
Q: 4. From a supply chain view of production and consumption which of the following must be true (in…
A: A supply chain basically refers to the collection of activities that an organization must do in…
Q: hy does the aggregate demand curve slope downward and what causes the AD curve to shift?
A: The aggregate demand curve depicts the demand pattern existing in the economy.
Q: A monopolist demand is D = P = $40 - $.25Qm; AC = MC = $5. The profit-maximizing price (P) and…
A: Answer; the correct option is A.
Q: Assume perfect competition: Price: $61 Cost: TC = 9Q + 0.03Q2 Solve for the profit-maximizing…
A: As given information P = $61 TC = 9Q + 0.03Q2 Assume that perfect competition , in the perfectly…
Q: Use the concept of opportunity cost to explain why velocity is higher at higher interest rates
A: Potential profits foregone when one alternative is chosen over another are referred to as…
Q: Consider the following normal form game
A: Given, Two Players : Player 1 and Player2Player 1's strategies : U, M and DPlayer 2's strategies :…
Q: Economists typically assume that when making decisions, the owners of firms wish to maximize A.…
A: The term "profit" may bring pictures of cash to mind, but to economists, profit encompasses…
Q: Question 10 The length of oil pipeline started to decrease since 1990 because: O The demand to crude…
A: 9. Pipeline transportation is a method of transport that involves the transportation of solid,…
Q: The marginal rate of technical substitution of L=2K means that the firm can substitute 2 units of…
A: Given that, The marginal rate of technical substitution of L=2K
Q: If it takes 0.3 dollars to buy a Mexican Peson and 0.6 dollars to buy a Brazilian Real, then it…
A: Answer: Given, 1 Mexican pesos=0.3 dollars...........equation 11 Brazilian Real=0.6…
Q: Why does SMC curve cut AVC curve at the minimum point of AVC curve?
A: The change in total cost per unit of change in output is known as short-run marginal cost (SMC).…
Q: Firms in an oligopolistic market ________ because they are ________. A. attempt to predict the…
A: Oligopoly is a market structure in which a small number of enterprises sell homogeneous or…
Q: A well educated society can be considered which of the following, as it pertains to economics?…
A: If a person's knowledge and abilities are developed in such a way that they finally result in a…
Q: Calculate Kenji's marginal revenue and marginal cost for the first seven shirts he produces, and…
A: Given:- Market price=$20 Kenji's Marginal revenue and Marginal cost for the first 7 shirts he…
Q: Consider a hospital that faces a demand curve, P = 150-Q, and supply curve MC=Q. a. Derive the…
A: In monopoly equilibrium occurs at the point where MR = MC In monopoly equilibrium occurs at the…
Q: Amanda has a 9 year old beagle named Lexi that tore her ACL. Amanda values Lexi at about $1,000. The…
A: The degree to which market prices represent all accessible, relevant information is referred to as…
Q: Required information Aquatech Microsystems spent $185,000 for a communications protocol to achieve…
A: Inflation is the rate change in the worth of the Wholesale Price Index (WPI) on a year-on year…
Q: i) What type of global currency system do we have today and how would you characterize it?
A: In international market, global currency is that currency which would be transacted…
Q: Assume that you buy a 1-year, 210,000-peso Philippine bond that pays 7 percent when the exchange…
A: At the old exchange rate Bond purchase price = 210000 pesos Time = 1 year Interest rate = 7 % or…
Q: 2. In the retail trade industry, unionized workers earn 19.0% more than non-unionized workers do. As…
A: A trade union is a membership-based organisation, which means that most of its members must be…
Q: A firm has $75,000 of cost of goods sold and $5,000 of accounts payable. Assume there are 365 days a…
A: To represent the company's short-term debt to its creditors or suppliers, "Accounts payable" (AP) is…
Q: (a) Given a utility function of an individual is U(x) = x² - 4x, determine his risk attitude. (b)…
A: For the given utility function U(x) = 1/2X2 -4X we can find out the risk measurement using the…
Q: 3- A company borrows $100.000 today at 12% nominal annual interest compounded monthly. Find the…
A: Answer I attached below with explanation
Q: If a country grows at a rate of 3% per year, how many years will it take to double in size? The…
A: The economies around the globe are involved in various economic and financial activities, where the…
Q: When advocating for something, understanding what your target market is, what is known about the…
A: Introduction Its correct answer is c) Impact evaluation because when we advocate for a topic. Then…
Q: Discuss the type of price control that can be implemented by a government to protect vulnerable…
A: Price control is a method followed by the government to ensure that the consumers and producers are…
Q: Draw a utility function which exhibits diminishing sensitivity but not loss aversion
A: The utility function calculates a consumer's happiness or welfare as a function of their consumption…
Q: The function Q = L0.3 + K0.7 is an example of _____ returns to scale of production.
A: There are returns to scale when changing all inputs in a given proportion leads to change the output…
Q: A company paid $200,000 for a machine to make a new product. The machine has a 5 year life and a…
A:
Q: Level of investment goes up by 200. What happens with the level of GDP if you know that MPS = 0,9.…
A: Given; Increase in level of investment; ∆I=200 Marginal propensity to save; MPS= 0.9 Marginal…
Q: B. Richard's nickname is "No-Risk Rick" because he is an extremely risk-averse individual. His…
A: There are two states with equal probability of 0.5
Q: check all that apply; a change in ___ will cause a shift in the entire supplu curve input prices…
A: Supply curve shows the different combination of price and quantity supplied. Its upward sloping…
Q: Which of the following is a method a incumbent's can use to make limit pricing a credible threat?…
A: The price means the rise or fall in the price of goods and services over a period of time. It means…
Q: 1. A certain company is considering two types of machine for its operation. The data are as follows:…
A: Present Worth refers to discounting of the future cash flow to the present at provided fixed rate .…
Q: The MC curve crosses the ATC curve at ATC's minimum, because A. ATC is falling when MCATC B. ATC is…
A: Marginal cost refers to change in total cost with respect to change in output. Average total cost is…
Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: Dollars per Unit $20 TOP 76 ATC AVC $16 $10 D MR 0 100 Units of Output per Week Given the above…
A: Answer: A monopolistic competitor maximizes its profit where the MR and MC intersect each other. The…
Step by step
Solved in 2 steps with 2 images
- 1. Consider a linear regression model y = XB + € with E(e) = 0. The bias of the ridge estimator of 3 obtained by minimizing Q(B) = (y — Xß)¹ (y — Xß) + r(BTB), for some r > 0, is ——(X²X + r1)-¹8 1 (X¹X +rI)-¹3 r -r(XTX+rI) ¹8 r(X¹X+r1) ¹31. For a regression model y = XB + u where u is N(0, o?1), y is nx1 matrix, X is nxp matrix, B is px1 matrix and u is nx1 matrix, a. derive the estimators B using the method of least squaresFind the regression equation, letting the first variable be the predictor (x) variable. Using the listed actress/actor ages in various years, find the best predicted age of the Best Actor winner given that the age of the Best Actress winner that year is 43 years. Is the result within 5 years of the actual Best Actor winner, whose age was 45 years? Best Actress 27 30 30 61 30 32 46 28 61 22 43 56 D Best Actor 42 39 38 45 51 49 59 51 38 57 45 34 Find the equation of the regression line. y = + (Round the constant to one decimal place as needed. Round the coefficient to three decimal places as needed.) The best predicted age of the Best Actor winner given that the age of the Best Actress winner that year is 43 years is years old. (Round to the nearest whole number as needed.) Is the result within 5 years of the actual Best Actor winner, whose age was 45 years? the predicted age is the actual winner's age.
- You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +0.23°Rain - 0.11*Rain2 + 0.08 Rain3 -0.0s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents = 13.2 +0.14*Rain -0.09 Rain?+0.07 Rain3 (5.1) (0.05) (0.03) (0.04) (3) Accidents= 75+0.24*Rain - 0.13 Rain2 (3.6) (0.12) (0.07) (4) Accidents = 94 +0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification1 O Specification 2 O Specification 3 O Specification 4 O None of them since Rain does not have a statistically significant effect on AccidentsTrue or False For a linear regression model including only an intercept, the OLS estimator of that intercept is equal to the sample mean of the independent variable.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 Constant -0.006 0.00017 -35.294 0.000 Time 0.640 0.000018 35512.6 0.000 s=0.030 R-Sq=1.000 R-sq (adj)=1.000 What is the equation of the least-squares regression line? Volume = 0.640 - 0.006(Time) Volume = 0.640 - 0.006(Time) Volume = -0.006 + 0.640(Time) Volume = - 0.006 + 0.640(Time?)
- A researcher estimates a regression using two different software packages.The first uses the homoskedasticity-only formula for standard errors. Thesecond uses the heteroskedasticity-robust formula. The standard errors arevery different. Which should the researcher use? Why?The best way to interpret polynomial regressions is to: A. look at the t-statistics for the relevant coefficients. B. analyze the standard error of estimated effect. C. plot the estimated regression function and to calculate the estimated effect on Y associated with a change in X for one or more values of X. D. take a derivative of Y with respect to the relevant X.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…
- Expedia wants to use regression analysis to build a model for airfare tickets prices in the states: Ticket prices = 30 + B1*Miles + E where Miles is measured in hundreds Coefficients 169.50 5.90 Intercept Miles (in hundreds) Which of the following is true? Standard Error 1.34 0.09 4 t Stat 126.85 61.28 P-value 0.000 0.002 If Miles increases by 1, then we predict ticket price to go up by $5.9. O If ticket price goes up by $1, then we predict Miles to go up by 590 miles. O If ticket price goes up by $100, then we predict Miles to go up by 590 miles. If Miles increases by 100, then we predict ticket price to go up by $5.9.Regression analysis was applied between $ sales (y) and $ advertising (r) across all the branches of a major international corporation. The following regression function was obtained. ŷ = 5000 + 7.25r (a) Predict the amount for sales where the advertising amount is $ 1,000,000.00. (b) If the advertising budgets of two branches of the corporation differ by $30,000, then what will be the predicted difference in their sales?A linear regression model for the revenue data for a company is R=27.1t+203 where R is total annual revenue and t is time since 1/31/02 in years. 12 months 12 months 12 months Billions of Dollars Revenue Gross Profit 12 months 12 months ending 1/31/02ending 1/31/03ending 1/31/04 ending 1/31/05 ending 1/31/06 500- 201 49 236 54 255 60 500- 277 65 (A) Draw a scatter plot of the data and a graph of the model on the same axes. OA. B. O.C. KICB Q 2 316 72 500- oo D. 500- Q G