Pearson eText for Basic Business Statistics -- Instant Access (Pearson+)
14th Edition
ISBN: 9780137400119
Author: MARK BERENSON, David Levine
Publisher: PEARSON+
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Chapter 16, Problem 27PS
a.
To determine
Fit a third order auto regressive model and test for significance of model.
b.
To determine
Fit a second order auto regressive model and test for significance of model.
c.
To determine
Fit a first order auto regressive model and test for significance of model.
d.
To determine
Forecast the value of single-family homes sold in 2017.
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The following regression uses data on illegal downloading of music. A sample of 500
individuals were asked whether they had downloaded music illegally (theft). In
addition, respondents also gave answers to the following;
caught: a respondent's belief of her chances of getting caught if she attempted
to act illegally (0-10, 10 being "great risk")
penalty: a respondent's belief regarding how severe her penalty would be if
she got caught (0-10, 10 being “great risk)
gender: gender, where male is 1 and female is 0
Edu: years of formal education
Income: Income of the respondent (£)
a. The estimated model was
Theft = Bo + B1 caught + B2penalty + B3gender + B4Income + B5Edu
Provide an explanation of the expected signs of each of the coefficients, referring
to relevant economic theory.
The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the
tractors increases with their age. The following data was collected:
Age
(years)
5.5
where Y = Yearly maintenance cost in dollars and X = Age in years.
5.5
5.5
5.0
5.0
5.0
6.0
6.0
6.5
Yearly
Maintenance
Cost (S)
1,319
1,749
1,733
1,195
1,423
1,381
1,590
2,222
1,687
Age
(years)
5.0
1.5
1.5
Y =
7.0
7.0
2.0
2.0
2.0
Yearly
Maintenance
Cost ($)
1,894
863
882
a. Use POM for Windows' least squares-linear regression module to develop a relationship to forecast the yearly maintenance cost based on the age of a tractor. (Enter your responses rounded to three decimal
places and include a minus sign if necessary.)
1,464
2,073
1,678
1,166
1,249
This dataset continues our saga of modeling the price of this popular Honda automobile. The dataset has now been cleaned to remove the columns with the dealership where the car was offered for sale and specific trim.
(a) write out your model in econometric notation. Be very precise!
(b) using the 93 observations in the dataset, estimate a model where price is a function of age, mileage and trim of the car. Be sure to avoid the dummy variable trap!! Fully report the results of your model. In this case, interpretation of the coefficients on the dummy variables is particularly important.
(c) test the hypothesis that the specific trim does not affect the price of a Civic. Be sure to do all parts of the hypothesis test.
(please fully describe steps if you are using Excel)
Price
Years Old
KM
EX
EXT
SE
Sport
Touring
6555
9
290363
0
0
0
0
0
9999
9
142258
0
0
0
0
0
10281
6
132644
0
0
0
0
0
12480
5
167125
0
0
0
0
0
12991
7
57398
0
0
0
0
0
12991
6
93046
0
0
0
0
0
12991…
Chapter 16 Solutions
Pearson eText for Basic Business Statistics -- Instant Access (Pearson+)
Ch. 16 - If you are using exponential smoothing for...Ch. 16 - Consider a nine-year moving average used to smooth...Ch. 16 - You are using exponential smoothing on an annual...Ch. 16 - Prob. 4PSCh. 16 - Prob. 5PSCh. 16 - How have stocks performed in the past? The...Ch. 16 - Prob. 7PSCh. 16 - Prob. 8PSCh. 16 - Prob. 9PSCh. 16 - Prob. 10PS
Ch. 16 - The linear trend forecasting equation for an...Ch. 16 - There has been much publicity about bounces paid...Ch. 16 - Prob. 13PSCh. 16 - Prob. 14PSCh. 16 - Prob. 15PSCh. 16 - The data shown in the following table and stored...Ch. 16 - Prob. 17PSCh. 16 - Prob. 18PSCh. 16 - Prob. 19PSCh. 16 - Prob. 20PSCh. 16 - Prob. 21PSCh. 16 - Prob. 22PSCh. 16 - You are given an annual time series with 40...Ch. 16 - Prob. 24PSCh. 16 - Prob. 25PSCh. 16 - Prob. 26PSCh. 16 - Prob. 27PSCh. 16 - Prob. 28PSCh. 16 - Prob. 29PSCh. 16 - Using the average baseball salary from 200 through...Ch. 16 - Using the yearly amount of solar power generated...Ch. 16 - The following residuals are from a linear trend...Ch. 16 - Prob. 33PSCh. 16 - Prob. 34PSCh. 16 - Prob. 35PSCh. 16 - Prob. 36PSCh. 16 - Prob. 37PSCh. 16 - Prob. 38PSCh. 16 - Prob. 39PSCh. 16 - Prob. 40PSCh. 16 - In forecasting daily time-series data, how many...Ch. 16 - In forecasting a quarterly time series over the...Ch. 16 - Prob. 43PSCh. 16 - Prob. 44PSCh. 16 - Are gasoline prices higher during the height of...Ch. 16 - Prob. 46PSCh. 16 - Prob. 47PSCh. 16 - The file Silver-Q contains the price in London for...Ch. 16 - Prob. 49PSCh. 16 - What is a time series?Ch. 16 - What are the different components of a time-series...Ch. 16 - What is the difference between moving average and...Ch. 16 - Prob. 53PSCh. 16 - How does the least-squares linear trend...Ch. 16 - How does autoregressive modelling differ from the...Ch. 16 - What are the different approaches to choosing an...Ch. 16 - What is the major difference between using SYX and...Ch. 16 - How does forecasting for monthly or quarterly data...Ch. 16 - Prob. 60PSCh. 16 - The monthly commercial and residential prices for...Ch. 16 - The data stored in McDonalds represent the gross...Ch. 16 - Teachers’ Retirement System of the City of New...Ch. 16 - Prob. 64PS
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