Let price denote a price index for the goods sold by a restaurant, advert the amount spent on advertising, sales the sales of the restaurant, and consider the model sales =B₁ + B₂price + 3 (price x advert) + e where Ele | price, advert] = 0. We estimate this model and find b₁ = 1, b₂ = 0.5, and b3 = 0.1, and Var (b₁) Cov (b₂, b₁) Cov (b₁,b₂) Var (b₂) Cov (b3, b₁) Cov (b3, b₂) Var (b3) Let å be the estimate for the marginal impact of a price change (i.e., oprice E[sales | price, advert]) at price = 1 and advert = 10. What is Var (2)? Cov (b₁, b3) 3 5-60 0.5 Cov (b2, b3)= O a. Var (1) = 4.2 O b. Var (2) = 22.2 O c. Var (2) 20.4 = O d. Var (2) = 2.4 O e. All other options are incorrect. 0.5 0.5 0.2 0.1 0.5 0.1 0.2
Let price denote a price index for the goods sold by a restaurant, advert the amount spent on advertising, sales the sales of the restaurant, and consider the model sales =B₁ + B₂price + 3 (price x advert) + e where Ele | price, advert] = 0. We estimate this model and find b₁ = 1, b₂ = 0.5, and b3 = 0.1, and Var (b₁) Cov (b₂, b₁) Cov (b₁,b₂) Var (b₂) Cov (b3, b₁) Cov (b3, b₂) Var (b3) Let å be the estimate for the marginal impact of a price change (i.e., oprice E[sales | price, advert]) at price = 1 and advert = 10. What is Var (2)? Cov (b₁, b3) 3 5-60 0.5 Cov (b2, b3)= O a. Var (1) = 4.2 O b. Var (2) = 22.2 O c. Var (2) 20.4 = O d. Var (2) = 2.4 O e. All other options are incorrect. 0.5 0.5 0.2 0.1 0.5 0.1 0.2
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![Let price denote a price index for the goods sold by a restaurant, advert the amount spent on advertising, sales the sales of the restaurant, and consider the model
sales = B1 + Bzprice + B3(price x advert) + e
where E[e | price, advert] = 0. We estimate this model and find b = 1, b2 = 0.5, and bz = 0.1, and
Var (b1)
Cov (b1, b2) Cov (b1, b3)
3
0.5
0.5
Cov (b2, b1)
Var (b2)
Cov (b2, b3)
0.5
0.2
0.1
Cov (b3, b1) Cov (b3, b2)
Var
(b3)
0.5
0.1
0.2
Let å be the estimate for the marginal impact of a price change (i.e., ric E[sales| price, advert]) at price = 1 and advert = 10. What is Var (Â)?
O a. Var (Â) = 4.2
O b. Var (Â)
= 22.2
Var (Â) = 20.4
O d. Var (Â) = 2.4
O e. All other options are incorrect.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fd47556-f3ce-4f39-818d-be563d9523c8%2F252670a6-91ae-41f0-afaa-cfe681f55d73%2F4n1sye_processed.png&w=3840&q=75)
Transcribed Image Text:Let price denote a price index for the goods sold by a restaurant, advert the amount spent on advertising, sales the sales of the restaurant, and consider the model
sales = B1 + Bzprice + B3(price x advert) + e
where E[e | price, advert] = 0. We estimate this model and find b = 1, b2 = 0.5, and bz = 0.1, and
Var (b1)
Cov (b1, b2) Cov (b1, b3)
3
0.5
0.5
Cov (b2, b1)
Var (b2)
Cov (b2, b3)
0.5
0.2
0.1
Cov (b3, b1) Cov (b3, b2)
Var
(b3)
0.5
0.1
0.2
Let å be the estimate for the marginal impact of a price change (i.e., ric E[sales| price, advert]) at price = 1 and advert = 10. What is Var (Â)?
O a. Var (Â) = 4.2
O b. Var (Â)
= 22.2
Var (Â) = 20.4
O d. Var (Â) = 2.4
O e. All other options are incorrect.
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