Mark Gershon, owner of a musical instrument distributorship, thinks that demand for guitars may be related to the number of television appearances by the popular group Maroon 5 during the previous month. Gershon has collected the data shown in the following table: Maroon 5 TV Appearances Demand for Guitars This exercise contains only part a. a) Graph these data using the point drawing tool. The plotted graph shows a pattern that can be described by: OA. Seasonality OC. Random variations 3587770 3 5 6 6 10 7 OB. Trend OD. Cycles

Mark Gershon, owner of a musical instrument distributorship, thinks that demand for guitars may be related to the number of television appearances by the popular group Maroon 5 during the previous month. Gershon has collected the data shown in the following table: Maroon 5 TV Appearances Demand for Guitars This exercise contains only part a. a) Graph these data using the point drawing tool. The plotted graph shows a pattern that can be described by: OA. Seasonality OC. Random variations 3587770 3 5 6 6 10 7 OB. Trend OD. Cycles

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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regression, econometrics
The answer should be typed.
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5. (26 points) The following two equations were estimated using a sample of births for the year 2010. The variable bwght is birth weight, in ounces, faminc is annual family income, in thousands of dollars, cigs is number of cigarettes the mother smoked per day while pregnant, motheduc is mother's education (in years), and fatheduc is father's education (in years): log (bŵght) = 4.73+ 0.146 log( faminc) - (0.03) (0.076) n=1,191 R² = 0.264 0.031 cigs (0.016) (5.1) log (bŵght) = 4.73+ 0.136 log( faminc) - (0.03) (0.076) - 0.051 cigs (0.010) 0.040 motheduc+ 0.041 fatheduc (0.030) n=1,191 R² = 0.286 (0.026) (5.2) (a) In terms of the model parameters, (i) state the null hypothesis that, after controlling for faminc, motheduc, and fatheduc, cigs has no effect on birth weight against the alternative that cigs has a negative effect; and (ii) carry out the test at the 10% significance level (4 points). (b) Controlling for cigs, is faminc individually significant at the 1% level against a two-…