I need help with c (c) Estimation output is presented in Figure 4 below. Interpret the marginal effect ofvariable "Food".Figure 4: Estimation outputCall:1m(formula = `Case-Shiller Housing Price Index`~ Food, data = x)Residuals:Min1Q Median3Q Max-29.238 -9.943 -2.793 12.282 28.424Coefficients:Estimate Std. Error t value(Intercept) -150.08593001 6.35598100 -23.61 <0.0000000000000002 ***Food0.00174447 0.00003906 44.66 <0.0000000000000002 ***Signif. codes: 0*** 0.001*** 0.01 * 0.05 '.' 0.1'' 1Residual standard error: 13.98 on 308 degrees of freedomMultiple R-squared: 0.8662, Adjusted R-squared: 0.8658F-statistic: 1994 on 1 and 308 DF, p-value: < 0.00000000000000022Pr(>ltl)

The marginal effect gives us an effect on the probability. In the probability scale, all effects are…

Answered: c) Estimation output is presented in…

Business

Economics

c) Estimation output is presented in Figure 4 below. Interpret the marginal effect of variable "Food".

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Your company wants to do their part to reduce pollution. They commit to reducing their greenhouse…

A: Optimal combination is where the total surplus is maximized. Optimal consumption is the situation…

Q: Suppose demand and supply are given by Qd = 40 − P and Qs = 1.0P − 10. a. What are the equilibrium…

A: The number of units of the commodities that consumers have requested at a specific price over a…

Q: The globalization of production may have: Select one: a. increased the inefficiency of labour…

A: Globalization of production is a key component of economic globalisation, which also includes…

Q: Know key terms: Explain in your own words (not google) the following: -LRAS -Aggregate Demand…

A: Aggregate supply is the total supply of all items and services produced inside an economy during a…

Q: Question 1 Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on…

A: Utility function : U(f , d ) = f0.9d0.1 Price of food = 1 Price of diaper = 0.5 Weekly Budget =…

Q: Suppose that the demand is given by P(Q) = 4 - Q and that the total cost is C = 2Q. a) Find the…

A: Disclaimer: Since You asked multipart question, we are solving the 1st three subparts as per…

Q: A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant…

A: Opportunity costs are the hidden expenses incurred when starting a new enterprise. In other terms,…

Q: Figure 18-1 201 18+ 16 14 12 h 10 8 6 a. $4 b. $5 Production Function 19. Refer to Figure 18-1.…

A: Value of marginal product is the price of output multiplied by the marginal product. Marginal…

Q: Consider two firms with constant marginal and average costs, and equal to 10. Market demand is Q =…

A: In Cournot market each firm’s production decision depends on other firm’s production

Q: Select all statements that are true using the attached chart. A.)Breakeven is the quantity where TR…

Q: Suppose you invest $1,000 today, compounded annually, with an annual interest rate of 5.00%. What is…

A: Introduction: The present value of the investment is $1000 which earns an interest rate of 5%. Now…

Q: From a spending model perspective, explain the causes and dynamics of a recession

A: ANSWER: Recession:- Downfall of the economy because of slowing down of economic activities in a…

Q: List and describe key functions performed by Treasurers of Financial institutions in primary markets…

A: The key functions performed by Treasurers of Financial institutions in primary markets when they…

Q: assume there is a huge pandemic and the US Gov’t requires lockdowns that close many businesses and…

A: Aggregate demand is the sum of consumption , investment , government spending and net export. =>…

Q: Answer True, False or Uncertain. Brieáy explain your answer. In an international economy of…

A: Perfectly substitutable currencies show that the demanders are not particular about whatever…

Q: Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per…

A: As per the Fisher equation,Real interest rate = Nominal interest rate - Inflation rate

Q: 6. Consider an economy of three-period-lived people in overlapping gener- ations. Each individual is…

A: 3 period overlapping model refers to that population lives for the 3 periods The first period---…

Q: o home-improvement stores (Great Home and Super Home) in a growing urban are interested in expanding…

A: The Dominant strategy is the best course of action irrespective of rival firm strategy. A firm…

Q: Answer True, False or Uncertain. Brieáy explain your answer. 2.The negative correlation between…

A: Real interest rate refers to the rate of interest charged after taking into consideration the level…

Q: River can produce $60 worth of goods in market production, and $10 in home production. Lake can…

A: We know that, Oppertunity cost is nothing but the amount of one good that must be given up to…

Q: A company is planning to manufacture snowboards. The fixed costs are $400 per day and total costs…

A: Given that, Fixed costs are $400 Daily output is 20 boards The total cost is $5400 Total cost =…

Q: Suppose that a market is described by the following supply and demand equations: Qs = 2P, Qd = 300 -…

A: In the free market, equilibrium price and quantity is determined by the forces of demand and supply…

Q: You are provided with the following information about an imaginary economy called Keynesia:…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…

Q: A7. Consider the basic Solow model with production function Y = ment growth. Which of the following…

A: The Solow Growth model is an exogenous growth model that explains the impact of change in the…

Q: If individual consumers have some obligation to support environmentally friendly technologies,…

A: We have show that is I do not think that all consumers can bear this responsibility equally. Making…

Q: Its production function is 2 times the square root of k (the same as 2k1/2) and its depreciation…

A: Introduction Solow has given a neo-classical model for economic growth which is the extension of…

Q: a. A lottery claims its grand prize is $2 million, payable over 4 years at $500,000 per year. If the…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: Suppose the supply of pocket calculators is given by 6= Q^S - P. Determine the price elasticity of…

A: Price elasticity measures the change in quantity due to change in price. Elasticity can be…

Q: Suppose Home and Foreign countries (H and F) trade two goods, G1 and G2, and each country is…

A: The opportunity Cost of a good method is the deficiency of different options when one option is…

Q: All goods have diminishing marginal utility, but for some goods (or activities), marginal utility…

A: The utility is the amount of satisfaction that a human being gets after consuming a particular good…

Q: The WTO has been able to solve all global trade problems. A) True B) False

A: WTO was established in 1995 during the GATT (General Agreement on Trade and Tariffs) discussions in…

Q: Question 4 Give the value for the consumer surplus in this market. Round to the penny. P 75 45.4 1…

A: Here, in the given graph, equilibrium price is 45.4, equilibrium quantity is 296, minimum…

Q: What is the neoclassical explanation for the natural rate or the NAIRU?

A: Neoclassical theory of economics was developed after both the classical and the Keynesian theories…

Q: The following graph shows a decrease in aggregate supply (A.S) in a hypothetical economy.…

A: Aggregate supply, also called total output, is the total supply of products and services produced…

Q: How does a tax on interest income influence the economic growth rate? A tax on interest income…

A: Income tax has no impact on the demand for labor, but the supply of labor does change. The gap…

Q: In the Mortensen-Pissarides of the job finding rate and a(n) Increase; Decrease No change; Decrease…

A: Mortensen-Pissarides model of unemployment is based on the idea of time gap that occurs when the…

Q: Mc Graw Hill c) Assuming that the cost of employing each worker is $220 per day (including wages and…

A: Note: You have uploaded two questions at a time. Hence, we shall answer the first one for you. If…

Q: Identify which curve on the previous graph corresponds to each of the following descriptions. If the…

A: In short run, economy is in equilibrium when aggregate demand and short run aggregate supply are…

Q: Exercise 3. Suppose a game has an exact potential o. Show that is an exact potential for the game if…

A: The study of how interdependent actions made by economic agents lead to outcomes that are connected…

Q: Fill in the table below when P= $10,000, S=$2,000 (at the end of four years), and i= 15% per year.…

A: Capital Recovery is defined as total initiative investment which is lost in the process of…

Q: An engineering project analyst is contemplating a 3-year project which will require an initial…

A: Present value is the concept that states an amount of money today is worth more than that same…

Q: 7. Following an increase in the separation rate, the Beveridge curve Shifts upward d. a. b. C.…

A: The supply and demand of labour, wherein employees provide the supply and employers provide the…

Q: d. Consider the following scenarios: Variable Cost/Book Access Price Demand Scenario 1 $6 $46 2,500…

A: Profit refers to the difference between the total revenue and total costs . Total Revenue = Price *…

Q: Need graphs, as well as the following:

A: The diagrams for the question asked, representing consumer surplus, producer surplus and other…

Q: Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse…

A: Given that, Demand function, p = 120-2 Marginal Cost, MC = 40 To calculate: Profit maximizings.

Q: Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment

A: Introduction: The loan amount is $5000 which has to repay in 2 years by making monthly payments.…

Q: If the reserve requirement is 10% and we want to increase the money supply by $50 billion, the Fed…

A: Reserve Requirement = 10% Increase in Money Supply = 50 billion

Q: Gozilla Inc. can generate 100 (CO2) emissions without any regulation. The marginal control cost for…

A: Gozilla can generate = 100 units. 50 Factory allowed to emit = 40 units. 20 MC = 20+0.5Q

Q: Hello! I just wanted to ask if change of minimum wage is elastic or inelastic? Thanks!

A: Elasticity is defined as the sensitivity of labor supply and labor demand to the changes in wages.…

Question

I need help with c

(c) Estimation output is presented in Figure 4 below. Interpret the marginal effect of
variable "Food".
Figure 4: Estimation output
Call:
1m(formula = `Case-Shiller Housing Price Index`~ Food, data = x)
Residuals:
Min
1Q Median
3Q Max
-29.238 -9.943 -2.793 12.282 28.424
Coefficients:
Estimate Std. Error t value
(Intercept) -150.08593001 6.35598100 -23.61 <0.0000000000000002 ***
Food
0.00174447 0.00003906 44.66 <0.0000000000000002 ***
Signif. codes: 0*** 0.001*** 0.01 * 0.05 '.' 0.1'' 1
Residual standard error: 13.98 on 308 degrees of freedom
Multiple R-squared: 0.8662, Adjusted R-squared: 0.8658
F-statistic: 1994 on 1 and 308 DF, p-value: < 0.00000000000000022
Pr(>ltl)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Use the following STATA output to test whether the variable wgt is significant at 5% level: Source | SS df Number of obs = EC 3. Prob > F R-squared MS 392 300.76 0.0000 0.6993 Adj R-squared anba6970 4.2965 388) = Model Juu16656.4443 Residual 162,54916 5552.1481 388 18.4601782 Total Juu23818.9935 391 60.9181419 Root MSE Coef. Std. Err. P>It| [95% Conf. Interval] syl ena wat .2677968 -.012674 -.0057079 44.37096 .4130673 .0082501 .0007139 1.480685 -0.65 -1.54 -8.00 29.97 0.517 0.125 0.000 0.000 -1.079927 -.0288944 -.0071115 41.45979 .5443336 0035465 .0043043 47.28213 _cons The variable is not significant because p-value is less than 0.05. The variable is significant because p-value is less than 0.05. The variable is significant because p-value is less than 0.1. The variable is not significant because p-value is greater than 0.05
4. The estimation of the model with quarterly car sales in the U.S. from 1975 to 1990 gives: Source | df MS Number of obs = 64 F( 2, Prob > F 61) = 12.21 Model .32720224 2 .16360112 0.0000 Residual | .817286587 61 .013398141 R-squared Adj R-squared = 0.2625 Root MSE 0.2859 Total | 1.14448883 63 .018166489 .11575 lqne | cCoef. t P>|t| std. Err. [95% Conf. Interval] 1price lincome -.4604611 3.37186 6.89398 -.8280926 .1838504 -4.50 0.000 -1.195724 2.399991 . 4860261 4.94 0.000 1.428121 _cons 5.92543 .4843662 12.23 0.000 4.95688 Based on the parameter estimates, what is the predicted effect of a 10% increase in price on the number of cars sold? What would be the effect of that price increase on the value of car sales?
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 Explain the interceptand the coefficients of Pc, M, and PA.
The regression equation Netincome = 2,049 +.0478 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars). (0-1) If Revenue = 1, then Netincome = (a-2) Choose the correct statement. (b) Choose the right option. (c) O Increasing the revenue raises the net income. Decreasing the revenue raises the net income. O Increasing the revenue lowers the net income. million. (Round your answer to 2 decimal places.) O The intercept is not meaningful because a firm cannot have net income when revenue is zero. The intercept is meaningful because a firm can have net income when revenue is zero. If Revenue = 24,574, then NetIncome = million. (Round your answer to the nearest whole number.)
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 3. What can you say about the relationship between cement and asphalt? Why? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
OA linear regression model is Units 3,414-0.839xWeek. For week 45, what is the forecast for the number of units? Round your answer to the nearest whole number. OO units
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 10. Write the resulting regression equation. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 6. If tax revenue per capita (M) increases by 10, what will happen to the estimated quantity of cement demanded? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 9. Calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 7. If the price of asphalt (PR) decreases by 15, what will happen to the estimated quantity of cement demanded? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
Define the Ordinary Least Square estimator is linear and conditionally unbiased?
The assumption that is required to shows the efficiency of the OLS estimator, consistency and unbiasedness is: i) Cov(u,,u-;) { A0 ii) Var(u,) =o? iii) E(u,) = 0 iv) u, ~ N(0,0²) a) (i), (ii) and (iii) only b) (i) and (iii) only c) (ii) and (iv) only d) (i), (ii) (iii) and (iv) Answer O A OD