(d) Suppose I estimate the following model: In Y 100 12.45 ln X Then according to my model: If X increases by 1%, Y decreases by 12.45% If X increases by 1, Y decreases by 12.45% □ If X increases by 1, Y decreases by 12.45 □ If X increases by 1%, Y decreases by 12.45
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- Given the regression equationY = -50 + 12Xa. What is the change in Y when X changes by +3?b. What is the change in Y when X changes by -4?c. What is the predicted value of Y when X = 12?d. What is the predicted value of Y when X = 23?e. Does this equation prove that a change in X causes a change in Y?Suppose that you have the following model and data to estimate the following equation; Nobs Y X2 X3 1 1 1 3 2 2 2 2 3 4 4 5 4 3 3 4 5 2 5 1 Find the OLS estimators for the parameters using the matrices above.Given the regression equationY = 43 + 10Xa. What is the change in Y when X changes by +8?b. What is the change in Y when X changes by -6?c. What is the predicted value of Y when X = 11? d. What is the predicted value of Y when X = 29? e. Does this equation prove that a change in X causes a change in Y?
- All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83. Compute to three decimal places. Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W 1.(a). Use the above to calculate the arc price elasticity of demand between PS = $9000 decreasing to PS = $8000. The arc elasticity formula is: 1.(b). Judging from the computation in (a), do you expect the revenue resulting from the decrease in Ps to $8000 to increase, remain the same, or decrease relative to the revenue at Ps = $9000. (Hint: see the table on page 65 of Truett). Explain your choice. 1.(c). Calculate the point elasticity of demand for Smooth Sailing sailboats at PS = $9000 (which should make Qs = 101600). The formula is: 1.(d). Does this elasticity value indicate that Smooth Sailing demand is relatively responsive to changes in the price of these sailboats? Explain…In the linear model ,E (X*u) = a)X*u b) 0 c) u d) none of tha aboveConsider the following model: yhat = 2.6+-0.9x² The prediction of y is yhat. What is the estimated marginal effect of x on y when x=2.7? PLZ MAKE SURE THIS IS RIGHT!!!
- In contrast, FarmerBooks.com's (a competitor of OHaganBooks.com) stock were increasing at a continuous rate of 3.2% per hour. Based on this information, create an exponential model, where t is time is hours since it was first offered, to answer the following: If you bought $8,000 worth of stock how many hours would it take your investment to reach $20,000? (Round to the nearest hour.)The models below have been estimated using monthly data for the period 2000: 1-2020: 12. The natural logarithm of the variables used in this model is taken and the transaction is made. D08 is the dummy variable that takes a value of 1 in 2008 and after and 0 in other periods. s.e. indicates the standard error. Comment on the coefficients of variables D08 and (X2t * D08) in the model (3) above.(Econmetrics) Q.1 How can you test for general misspecification of model if it would have only (any of) two independent variables?
- The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 40, Z, and inversely with the price of the snowmobiles P. Based on past data, the best estimate of this relationship isS = k (YZ/ P)where k has been estimated (with past data) to equal 100.a. If Y = $11,000, Z = $1,200, and P = $20,000, what value would you predict for S?b. What happens if P is reduced to $17,500?c. How would you go about developing a value for k?d. What are the potential weaknesses of this model?(1.4) Consider the following IS-LM model: I Y=C+I+G C=100+0.4(Y-T) I= 150 +0.2Y - 4,000r r = 0.01 with G = 200 and T = 100. (a) Derive the IS curve and draw it in an appropriate diagram. (b) Calculate the equilibrium values of Y, C, I and r. (c) What is the impact of decreasing government spending to G' = 180 in terms of the new equilibrium value Y"? (d) Suppose the central bank decides it wants to counteract the restrictive fiscal policy. What exactly (i.e. we look for graphical and numerical answers) can the central bank do in order to keep equilibrium output at the value obtained for Y in (b)?1. Suppose you observe (y, x₁,x2,...,k) for N observations. For each observation i, the model is yi Bo + B1x1i + B₂x2i + + BkXki + €į. Write the model out in matrix form. What are the dimensions of Y, X, B, €? =