Answered: We use Stata for Analysis, please…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

100%

We use Stata for Analysis, please include commands used.

1. (Practice) You've been hired to determine the impact of advertising on gross sales revenue for "Four Musketeers" candy bars. Four Musketeers has the same price and more or less the same ingredients as competing candy bars, so it seems likely that only advertising affects sales. You decide to build a model of sales as a function of advertising, but you're not sure whether a distributed lag or a dynamic model is appropriate. Using the data provided in the file, estimate a distributed lag model (4 lags) and a dynamic model showing 4 lags. Compare the coefficient estimates of the two models and which model do you think is best? Test for serial correlation in the estimated dynamic model.

OBS	YEAR	SALES	AD
1	1981		30
2	1982		35
3	1983		36
4	1984	320	39
5	1985	360	40
6	1986	390	45
7	1987	400	50
8	1988	410	50
9	1989	400	50
10	1990	450	53
11	1991	470	55
12	1992	500	60
13	1993	500	60
14	1994	490	60
15	1995	580	65
16	1996	600	70
17	1997	700	70
18	1998	790	60
19	1999	730	60
20	2000	720	60
21	2001	800	70
22	2002	820	80
23	2003	830	80
24	2004	890	80
25	2005	900	80
26	2006	850	75
27	2007	840	75
28	2008	850	75
29	2009	850	75