Question 1

What are the different categories into which a time-series pattern can be broken? Briefly describe each.

Accepted Answer

A time-series can be broken into four co...

Question 2

Liza is a manager of a leading soft drink manufacturing firm. Liza uses 10 months data and estimates the following demand equation:
Q = 10 - .5P + 1.5Y + .25PR
(2) (.17) (.75) (.50)
where P is the price of the soft drink manufactured by Liza's firm, Y refers to household per capita income, and PR is the price of a rival soft drink manufacturing firm. The standard errors of the coefficients are given in the parentheses. Which of the explanatory variables have significant effects on the demand for soft drink manufactured by Liza's firm? Explain.
(At 95% confidence level, the relevant t-statistic for 6 degrees of freedom is 1.94)

Accepted Answer

In order to determine the significance o...

Question 3

Suppose that in a given regression, the R2 = .945, the number of observations is 14, and the number of coefficients is 5. What is the adjusted R2? (round off your answer up to three decimal places)

Accepted Answer

In this case, the degrees of f...

Question 4

In contrast to simple regression, multiple regression considers:

Accepted Answer

A)   several dependent variables rather than one.
B)   several independent variables rather than one.
C)   more than one dependent and independent variable.
D)   multiple equation specifications in order to find the best statistical fit.
E)   both times-series data and cross-section data.

Question 5

A response bias occurs when:

Accepted Answer

A)   responses do not reflect the true preferences and attitudes of respondents.
B)   insufficient sample size tends to lower the variability of the responses.
C)   the questions do not reflect the true intentions of the surveyor.
D)   different versions of the question are targeted to different segments of respondents.
E)   the large sample size makes it difficult for the surveyor to reconcile the various responses.

Question 6

If a study examines several different markets at the same time, and compares outcomes with conditions in each market, it is specifically using:

Accepted Answer

A)   time series data.
B)   censored data.
C)   controlled data.
D)   truncated data.
E)   cross-sectional data.

Question 7

The difference between the predicted value and the actual value of a variable in a regression analysis is called:

Accepted Answer

A)   absolute divergence.
B)   estimation error.
C)   standard error.
D)   mean deviation.
E)   variance.

Question 8

What are the two main categories of forecasting models? How do they differ?

Accepted Answer

Forecasting models often are divided int...

Question 9

How would a forecaster determine which functional form of an equation to use to predict a variable?

Accepted Answer

A forecaster would most likely use regre...

Question 10

A time-series model attempts to identify:

Accepted Answer

A)   patterns of changes in a single variable over time.
B)   possible links between a dependent variable and a single independent variable over time.
C)   possible links between a dependent variable and one or more independent variables over time.
D)   the key factors that help predict future economic events.
E)   patterns of forecast errors over time.

Question 11

If a forecaster is analyzing sales of gasoline in a large city during the next two years, which time-series component is likely to be most important?

Accepted Answer

Over 10 years, the general gro...

Question 12

Computing the F-statistic allows one to:

Accepted Answer

A)   measure the forecasting accuracy of the regression equation.
B)   determine which variable contributes the most explanatory power to the regression.
C)   measure the degrees of freedom in the regression.
D)   predict the increased explanation of any additional variables that might be included.
E)   test the overall statistical significance of the regression equation.

Question 13

The equation Q = a + bt + ct2 represents:

Accepted Answer

A)   a quadratic trend.
B)   a linear trend.
C)   a smooth downward trend.
D)   a harmonic trend.
E)   an exponential trend.

Question 14

You are a newly hired marketing trainee for a local corporation. Senior management has wondered how other local firms view your company's reputation. One suggestion is to call a variety of managers from a master contact list of firms that your firm has done business with over the last 12 months and ask them what they think of the company. How reliable is this kind of survey method?

Accepted Answer

Using the firm's own contact list is a v...

Question 15

Which of the following can be used to correct for seasonality in time-series modeling?

Accepted Answer

A)   Error terms
B)   Binomial coefficients
C)   Dummy variables
D)   Stochastic constants
E)   Confidence intervals

Question 16

Heteroscedasticity occurs when:

Accepted Answer

A)   the variance of the random error is non-constant over the sample.
B)   the regression coefficient estimates are highly unstable.
C)   the random errors are correlated over time.
D)   two or more explanatory variables are highly correlated.
E)   the dependent and the explanatory variables are highly uncorrelated.

Exam 4: Estimating and Forecasting Demand

Computing the F-statistic allows one to:

Correct Answer
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If a study examines several different markets at the same time, and compares outcomes with conditions in each market, it is specifically using:

Correct Answer
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A response bias occurs when:

Correct Answer
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In contrast to simple regression, multiple regression considers:

Correct Answer
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Heteroscedasticity occurs when:

Correct Answer
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Correct Answer
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In order to determine the significance o...
View Answer

What are the different categories into which a time-series pattern can be broken? Briefly describe each.

Correct Answer
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A time-series can be broken into four co...
View Answer

The equation Q = a + bt + ct² represents:

Correct Answer
verified

What are the two main categories of forecasting models? How do they differ?

Correct Answer
verified
Forecasting models often are divided int...
View Answer

The difference between the predicted value and the actual value of a variable in a regression analysis is called:

Correct Answer
verified

Suppose that in a given regression, the R² = .945, the number of observations is 14, and the number of coefficients is 5. What is the adjusted R²? (round off your answer up to three decimal places)

Correct Answer
verified
In this case, the degrees of f...
View Answer

Correct Answer
verified
Using the firm's own contact list is a v...
View Answer

If a forecaster is analyzing sales of gasoline in a large city during the next two years, which time-series component is likely to be most important?

Correct Answer
verified
Over 10 years, the general gro...
View Answer

A time-series model attempts to identify:

Correct Answer
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How would a forecaster determine which functional form of an equation to use to predict a variable?

Correct Answer
verified
A forecaster would most likely use regre...
View Answer

Which of the following can be used to correct for seasonality in time-series modeling?

Correct Answer
verified

Exam 4: Estimating and Forecasting Demand

Computing the F-statistic allows one to:

Correct AnswerverifiedShow Answer

If a study examines several different markets at the same time, and compares outcomes with conditions in each market, it is specifically using:

Correct AnswerverifiedShow Answer

A response bias occurs when:

Correct AnswerverifiedShow Answer

In contrast to simple regression, multiple regression considers:

Correct AnswerverifiedShow Answer

Heteroscedasticity occurs when:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIn order to determine the significance o...View AnswerShow Answer

What are the different categories into which a time-series pattern can be broken? Briefly describe each.

Correct AnswerverifiedA time-series can be broken into four co...View AnswerShow Answer

The equation Q = a + bt + ct2 represents:

Correct AnswerverifiedShow Answer

What are the two main categories of forecasting models? How do they differ?

Correct AnswerverifiedForecasting models often are divided int...View AnswerShow Answer

The difference between the predicted value and the actual value of a variable in a regression analysis is called:

Correct AnswerverifiedShow Answer

Suppose that in a given regression, the R2 = .945, the number of observations is 14, and the number of coefficients is 5. What is the adjusted R2? (round off your answer up to three decimal places)

Correct AnswerverifiedIn this case, the degrees of f...View AnswerShow Answer

Correct AnswerverifiedUsing the firm's own contact list is a v...View AnswerShow Answer

If a forecaster is analyzing sales of gasoline in a large city during the next two years, which time-series component is likely to be most important?

Correct AnswerverifiedOver 10 years, the general gro...View AnswerShow Answer

A time-series model attempts to identify:

Correct AnswerverifiedShow Answer

How would a forecaster determine which functional form of an equation to use to predict a variable?

Correct AnswerverifiedA forecaster would most likely use regre...View AnswerShow Answer

Which of the following can be used to correct for seasonality in time-series modeling?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In order to determine the significance o...
View Answer

Correct Answer
verified
A time-series can be broken into four co...
View Answer

The equation Q = a + bt + ct² represents:

Correct Answer
verified

Correct Answer
verified
Forecasting models often are divided int...
View Answer

Correct Answer
verified

Suppose that in a given regression, the R² = .945, the number of observations is 14, and the number of coefficients is 5. What is the adjusted R²? (round off your answer up to three decimal places)

Correct Answer
verified
In this case, the degrees of f...
View Answer

Correct Answer
verified
Using the firm's own contact list is a v...
View Answer

Correct Answer
verified
Over 10 years, the general gro...
View Answer

Correct Answer
verified

Correct Answer
verified
A forecaster would most likely use regre...
View Answer

Correct Answer
verified