5. Using the accelerator model in which the level of inventories in current perioddepends on the expected sales following this equation: Nt= a EStWhere N stands for the current level of inventories, ESt stands for the level of expectedsales and alpha is a parameter equal to 0.6. The growth or increase in inventories isgiven by AN, = B(N₁-N₁-1), where Beta parameter is equal to 0.3a) Suppose that the initial level of inventories is zero and the forecasting for sales forthis period is equal to 200. Can you quantify the level of inventory investment? Whatwould it be total production in period 1?b) Now suppose that in the second period there growth of inventories is 12%. What isthe value of inventory investment for period 2 and forecasting sales for period 2?

Answered: Image /qna-images/answer/bed31398-025c-4c3d-8b80-e343be52485b.jpg

5. Using the accelerator model in which the level of inventories in current period depends on the expected sales following this equation: N₁= a ESt Where N stands for the current level of inventories, ESt stands for the level of expected sales and alpha is a parameter equal to 0.6. The growth or increase in inventories is given by AN, = B(N₁-N₁₁) where Beta parameter is equal to 0.3 7 a) Suppose that the initial level of inventories is zero and the forecasting for sales for this period is equal to 200. Can you quantify the level of inventory investment? What would it be total production in period 1? Now suppose that in the second period there growth of inventories is 12%. What is the value of inventory investment for period 2 and forecasting sales for period 2? 1

5. Using the accelerator model in which the level of inventories in current period depends on the expected sales following this equation: N₁= a ESt Where N stands for the current level of inventories, ESt stands for the level of expected sales and alpha is a parameter equal to 0.6. The growth or increase in inventories is given by AN, = B(N₁-N₁₁) where Beta parameter is equal to 0.3 7 a) Suppose that the initial level of inventories is zero and the forecasting for sales for this period is equal to 200. Can you quantify the level of inventory investment? What would it be total production in period 1? Now suppose that in the second period there growth of inventories is 12%. What is the value of inventory investment for period 2 and forecasting sales for period 2? 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Sub : EconomicsPls answer very fast.I ll upvote correct answer. Thank You
Suppose that the world's current oil reserves is R = 2060 billion barrels. If, on average, the total reserves is decreasing by 15 billion barrels of oil each year, answer the following: A.) Give a linear equation for the total remaining oil reserves, R, in terms of t, the number of years since now. (Be sure to use the correct variable and Preview before you submit.) R= B.) 8 years from now, the total oil reserves will be billions of barrels. C.) If no other oil is deposited into the reserves, the world's oil reserves will be completely depleted (all used up) approximately years from now. (Round your answer to two decimal places.)
The Montag Family purchased a house in 2020 and expects its value (in thousands of dollars) t years in the future will be well-modeled by the function V(t)=310(1.08). By what percentage does the model predict the house will increase in value each year?
Q. Table provided gives data on gross domestic product (GDP) for the United States for the years 1959–2005. a. Plot the GDP data in current and constant (i.e., 2000) dollars against time. b. Letting Y denote GDP and X time (measured chronologically starting with 1 for 1959, 2 for 1960, through 47 for 2005), see if the following model fits the GDP data: Yt = β1 + β2 Xt + ut Estimate this model for both current and constant-dollar GDP. c. How would you interpret β2? d. If there is a difference between β2 estimated for current-dollar GDP and that estimated for constant-dollar GDP, what explains the difference? e. From your results what can you say about the nature of inflation in the United States over the sample period? Please answer c, d, and e. Thank you!
c please
Styles 6. The following two regression models are Probit and Logit respectively: Pr(Y=1|X)=(Bo+Bi xXr+Bzx X2) Pr(Y=1|X)=F(Bu + B₁ × Xs + 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? (c) Sketch a graph of the Y= $(Z) function. (Z on the horizontal axis, Y on the vertical axis) (d) What estimation method is used to estimate the coefficients in a Probit/Logit model? (e) What are the two measures of fit for models with binary dependent variables? Focus 88 B E
Assume a model economy with the following parameters: C=300+0.25 Yd I=250+0.5Y-2500i G=350 T=300 (M/P)d= 4Y-16,000i (M/P)s= 880 Derive the IS and LM relations and solve for equilibrium real output and equilibrium interest rate.
See Figure 2.2 and examine the model. Unlike other circular flow models, this model is missing another sector/s. what is the missing sector?
Use the attached graph .. which of the following can cause the relationship shown between MSC and MPC? a) an increase in cases of asthma due to pollution b) a decrease in financial instability from unlawful investing c) a increase in investment to support educational funding. d) a decrease in air pollution caused by a nuclear energy plant e)an increase in research and development funding of a product
Q2 Solve 2 parts
What conditions must non-linear time series models, such as vector autoregressive models, satisfy in order to use impulse response functions
Only typed solution