Statistics for Business and Economics (13th Edition)
13th Edition
ISBN: 9780134506593
Author: James T. McClave, P. George Benson, Terry Sincich
Publisher: PEARSON
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Chapter 14.8, Problem 14.43ACB
A gasoline tax on carbon emissions. In an effort to reduce gasoline consumption and curb carbon emissions, policymakers have proposed raising gasoline taxes. In the Journal of Applied Econometrics (Vol. 26, 2011). a group of economists investigated the effect of a gasoline tax on gas consumption. The researchers used least squares regression to model gasoline consumption in month t (Yt) as a
a. Write a model for Yt as a function of Xt that proposes a linear relationship between gasoline consumption and after-tax gasoline price.
b. Add dummy variables for months to the model, part a. Use December as the base level.
c. What statistical test would you conduct to determine whether
d. Assume that monthly data from January 2002 to March 2012 (n = 123 months) were used to fit the model, part b. In terms of the β′s of the model, what is the forecast of gasoline consumption in January 2017?
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Find the required linear model using least-squares regression.
The table below gives the total sales (in billions of dollars) for the aerospace industry.
Year
2006
2007
2008
2009
2010
2011
Total Sales
179.7
182.0
183.6
184.8
185.8
186.6
(a) Find a linear model for the data with x = 6 corresponding to the year 2006.
(b) Assuming the trend continues, estimate the total sales for the year 2016.
(a) The linear model for the data is y =x+
(Round to two decimal places as needed.)
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The November 24, 2001, issue of The Economist published economic data for 15
industrialized nations. Included were the percent changes in gross domestic product (GDP),
industrial production (IP), consumer prices (CP), and producer prices (PP) from Fall 2000
to Fall 2001, and the unemployment rate in Fall 2001 (UNEMP). An economist wants to
construct a model to predict GDP from the other variables. A fit of the model
GDP = , + P,IP + 0,UNEMP + f,CP + P,PP + €
yields the following output:
The regression equation is
GDP = 1.19 + 0.17 IP + 0.18 UNEMP + 0.18 CP – 0.18 PP
Predictor
Coef SE Coef
тР
Constant
1.18957 0.42180 2.82 0.018
IP
0.17326 0.041962 4.13 0.002
UNEMP
0.17918 0.045895 3.90 0.003
CP
0.17591 0.11365 1.55 0.153
PP
-0.18393 0.068808 -2.67 0.023
Predict the percent change in GDP for a country with IP = 0.5, UNEMP = 5.7, CP =
3.0, and PP = 4.1.
a.
b.
If two countries differ in unemployment rate by 1%, by how much would you predict
their percent changes in GDP to differ, other…
In a study of housing demand, the county assessor develops the following regression model to estimate the market value (i.e., selling price) of
residential property within his jurisdiction. The assessor suspects that important variables affecting selling price (Y, measured in thousands of dollars)
are the size of a house (X₁, measured in hundreds of square feet), the total number of rooms (X₂), age (X3), and whether or not the house has an
attached garage (X4, No = 0, Yes = 1).
Y = a + B₁X₁+ B2X2 + B3X3+ B4X4+ ε
Now suppose that the estimate of the model produces following results: a = 182.550, b₁ = 4.067, b₂ = 3.422, b3 = 0.019, b4-8.962,
Sb1 = 0.571, Sb2 = 3.225, Sb=0.432, sb = 7.302, R² = 0.946, F-statistic = 43.61, and se = 7.923. Note that the sample consists of 15
randomly selected observations.
According to the estimated model, holding all else constant, an additional room means the market value
Which of the independent variables (if any) appears to be statistically significant…
Chapter 14 Solutions
Statistics for Business and Economics (13th Edition)
Ch. 14.1 - Explain in words how to construct a simple index.Ch. 14.1 - Explain in words how to calculate the following...Ch. 14.1 - Explain in words the difference between Laspeyres...Ch. 14.1 - The table below gives the prices for three...Ch. 14.1 - Refer to Exercise 14.4. The next table gives the...Ch. 14.1 - Annual median family income. The table below lists...Ch. 14.1 - Annual U.S. craft beer production. While overall...Ch. 14.1 - Quarterly single-family housing starts. The...Ch. 14.1 - Spot price of natural gas. The table shown in the...Ch. 14.1 - Employment in farm and nonfarm categories....
Ch. 14.1 - GOP personal consumption expenditures. The gross...Ch. 14.1 - GDP personal consumption expenditures (contd)....Ch. 14.1 - Weekly earnings for workers. The table in the next...Ch. 14.1 - Production and price of metals. The level or price...Ch. 14.2 - Describe the effect of selecting an exponential...Ch. 14.2 - A monthly time series is shown in the table to the...Ch. 14.2 - Annual U.S. craft beer production. Refer to the...Ch. 14.2 - Foreign fish production. Overfishing and pollution...Ch. 14.2 - Yearly price of gold. The price of gold is used by...Ch. 14.2 - Personal consumption in transportation. There has...Ch. 14.2 - OPEC crude oil imports. The data in the table...Ch. 14.2 - SP 500 Stock Index. Standard Poors 500 Composite...Ch. 14.5 - How does the choice of the smoothing constant w...Ch. 14.5 - Refer to Exercise 14.4 (p. 14-9). The table with...Ch. 14.5 - Annual U.S. craft beer production. Refer to...Ch. 14.5 - Quarterly single-family housing starts. Refer to...Ch. 14.5 - Consumer Price Index. The CPI measures the...Ch. 14.5 - OPEC crude oil imports. Refer to the annual OPEC...Ch. 14.5 - SP 500 Stock Index. Refer to the quarterly...Ch. 14.5 - SP 500 Stock Index (contd). Refer to Exercise...Ch. 14.5 - Monthly gold prices. The fluctuation of gold...Ch. 14.6 - Annual U.S. craft beer production. Refer to the...Ch. 14.6 - Annual U.S. craft beer production (contd). Refer...Ch. 14.6 - SP 500 Stock Index. Refer to your exponential...Ch. 14.6 - SP 500 Stock Index (contd). Refer to your Holt...Ch. 14.6 - Monthly gold prices. Refer to the monthly gold...Ch. 14.6 - US school enrollments. The next table reports...Ch. 14.8 - The annual price of a finished product (in cents...Ch. 14.8 - Retail sales in Quarters 14 over a 10-year period...Ch. 14.8 - What advantage do regression forecasts have over...Ch. 14.8 - Mortgage interest rates. The level at which...Ch. 14.8 - Price of natural gas. Refer to Exercise 14.9 (p....Ch. 14.8 - A gasoline tax on carbon emissions. In an effort...Ch. 14.8 - Predicting presidential elections. Researchers at...Ch. 14.8 - Life insurance policies in force. The table below...Ch. 14.8 - Graphing calculator sales. The next table presents...Ch. 14.8 - Prob. 14.47ACICh. 14.9 - Define autocorrelation. Explain why it is...Ch. 14.9 - For each case, indicate the decision regarding the...Ch. 14.9 - What do the following Durbin-Watson statistics...Ch. 14.9 - Company donations to charity. Refer to the Journal...Ch. 14.9 - Forecasting monthly car and truck sales. Forecasts...Ch. 14.9 - Predicting presidential elections. Refer to the...Ch. 14.9 - Mortgage interest rates. Refer to the data on...Ch. 14.9 - Price of natural gas. Refer to the annual data on...Ch. 14.9 - Life insurance policies in force. Refer to the...Ch. 14.9 - Modeling the deposit share of a retail bank....Ch. 14 - Insured Social Security workers. Workers insured...Ch. 14 - Insured Social Security workers (contd). Refer to...Ch. 14 - Retail prices of food items. In 1990, the average...Ch. 14 - Demand for emergency room services. With the...Ch. 14 - Mortgage interest rates. Refer to the annual...Ch. 14 - Price of Abbott Labs stock. The yearly closing...Ch. 14 - Price o f Abbott Labs stock (contd). Refer to...Ch. 14 - Prob. 14.65ACICh. 14 - Prob. 14.66ACICh. 14 - Quarterly GOP values (contd). Refer to Exercise...Ch. 14 - Prob. 14.68ACICh. 14 - Prob. 14.69ACICh. 14 - Prob. 14.70ACICh. 14 - IBM stock prices. Refer to Example 14.1 (p. 14-5)...Ch. 14 - Prob. 14.72ACI
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