Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 4E
a)
To determine
To construct: Five equation econometric model.
b)
To determine
To calculate:
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Stowe Automotive is considering an offer from the country of Indula to build a plant making automotive parts for use there. In preparation for a final
decision, Stowe's economists have been hard at work constructing a basic econometric model for Indula to aid the company in predicting future levels
of economic activity. Because of the cyclical nature of the automotive parts industry, forecasts of future economic activity are quite important in
Stowe's decision process.
Corporate profits (Pt - 1) for all firms in Indula were about $130.00 billion. GDP for the nation is composed of consumption, C, investment, I, and
government spending, G. It is anticipated that Indula's federal, state, and local governments will spend in the range of $260 billion next year. On the
basis of an analysis of recent economic activity in Indula, consumption expenditures are assumed to be $156.00 billion plus 80% of national income.
National income, Y, is equal to GDP minus taxes, T. Taxes are estimated to be…
Tom Tolkien, the CEO, is not happy with the quality of information being presented by his business manager. He asks the best economic consultancy firm in the country to provide an accurate macroeconomic forecast, which they guarantee would be 100% accurate. What is the most that Tolkien Transport should be willing to pay the research firm for this information (in other words what is the value of perfect information concerning the state of the economy)?
I need some help, Also can you show me all the steps, please?
Lizards of a valuable breed (Alligator lizards) have been introduced onto Lizard Island and their population is growing. The Population (P) is modelled by the differential equation dp/pt=-k(p-m) where t is the number of years that have passed since January 2022, M is an upper bound on the population due to limitations on the island’s natural resources, and k is a constant relating to the net population growth rate. Customers (Paying tourists) of the island seeing some lizards is essential for the business, so the operator is keen for the number of lizards to reach 75% of M in January 2028
(a) Use the separation of variables technique to formulate a solution to the differential equation.
(b) In January 2022, there were 50 lizards and in January 2023 there were 60. Current scientific research estimates k as 0.05, but M is unknown. Estimate M from this data.
(c) The business wants to start feeding the lizards vitamins from…
Chapter 5 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Ch. 5 - The forecasting staff for the Prizer Corporation...Ch. 5 - Prob. 2ECh. 5 - Metropolitan Hospital has estimated its average...Ch. 5 - Prob. 4ECh. 5 - A firm experienced the demand shown in the...Ch. 5 - The economic analysis division of Mapco...Ch. 5 - The Questor Corporation has experienced the...Ch. 5 - Bell Greenhouses has estimated its monthly demand...Ch. 5 - Savings-Mart (a chain of discount department...Ch. 5 - Prob. 1.1CE
Ch. 5 - Plot the logarithm of arrivals for each...Ch. 5 - Logarithms are especially useful for comparing...Ch. 5 - Prob. 1.4CECh. 5 - In attempting to formulate a model of the...Ch. 5 - Estimate the double-log (log linear) time trend...Ch. 5 - Prob. 2.1CECh. 5 - Prob. 3.1CECh. 5 - Prob. 3.2CECh. 5 - Prob. 3.3CE
Knowledge Booster
Similar questions
- The answer is not Development 4 and Support 1 either.arrow_forwardThe question is based on the following information: Business A produces electrical plugs. It wants to expand its production and needs funds to finance the machinery that it needs to purchase in order to expand production. Business B is a mining business, and has just exported a large amount of platinum, for which it has received a large cash payment. Business B plans to build a new shaft in two years' time and therefore wants to invest this cash now and earn interest on it until it is needed. Business B purchases a financial asset from Business C. Business C then uses the funds it received from Business B to lend to Business A. Business A will pay back the funds over a period of two years. Which one of the following is a financial intermediary? Select one: a. Business A b. Business B c. Business Carrow_forwardGg.40.arrow_forward
- The marketing team at Printer Press Associates has hired you on a contract basis to conduct important company analysis. Since you have experience in optimizing functions, the team plans to apply your skillset to help with company forecasts. On the first day of your employment, they hand you a sheet with an explicit function that mimics their short-run profit, and ask you determine the level of output where profit is maximized. Once this value is determined, they can use it as a baseline to predict future output levels that will enhance business longevity in the long run. They realize this is not a perfect science, but in a world of uncertainty based on probabilistic outcomes, this exercise will give them confidence they are headed in the right direction. The function is below along with some possible graphs to match. Choose the correct answer below. r=-30 + 200q - 5q² where = profit and q = outputarrow_forwardFollowing Hotelling, we might expect the real price of nonrenewable resources to increase continually over time, as resource stocks are depleted. But empirical evidence for a number of nonrenewable (mineral) resources indicates that their prices over the past century have not been increasing monotonically. Instead the price paths for a number of nonrenewable resources have been “U-shaped”. Provide an explanation for what’s going on. i.e. resolve this apparent anomaly between theory and observation- why would the price of these resources be driven down instead of increasing as the theory predicts?arrow_forwardCOVID-19 has impacted the global economy, spreading across nations with alarming speed, infecting millions. According to Statista, India saw an unemployment rate of 6 percent in January 2021, higher than the pre-pandemic level. Unemployment rate had gone up to nearly 24 percent in April 2020. This was possibly a result of a decrease in demand as well as the disruption of workforce faced by companies. Despite a modest recovery, the economy is still far-off the pre-pandemic level. Given this scenario, which of the following might happen? Consumer spending on luxury goods will increase. Consumer spending for food will increase. Government expenditure will increase. Investment for pharmaceutical products might increase.arrow_forward
- Estimate the double-log (log linear) time trend model for log cruise ship arrivals against log time. Estimate a linear time trend model of cruise ship arrivals against time. Calculate the root mean square error between the predicted and actual value of cruise ship arrivals. Is the root mean square error greater for the double log non-linear time trend model or for the linear time trend model?arrow_forwardIn a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The rate o return on Apex was rA = 3.7%. The rate of return on Bpex was only rg = 3.3%. The market today responded to very encouraging new about the unemployment rate, and M = 3.4%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Apex: A = 0.3% + 1.5PM Bpex: rg = -0.1% + 0.5rM. Required: a. What is the predicted returns for Apex & Bpex? b. Which company do you think won the lawsuit? Complete this question by entering your answers in the tabs below. Required A Required B What is the predicted returns for Apex & Bpex? Note: Do not round intermediate calculations. Round your answers to 1 decimal place. Apex Врех Predicted Returns % %arrow_forward8, Q4) Hey, need help with the following multi-part macroeconomics problem. Thank you in advance! In this problem, consider a simple mutual fund. Households and businesses invest in the fund by buying shares; the fund uses this money, in turn, to invest in a range of assets, including equities and bonds. If an investor wishes to divest from the fund, she can “redeem” her shares. Redeeming involves selling the shares back to the mutual fund for a price called the “net asset value” (NAV). The NAV is equal to the difference between assets and liabilities, divided by the total number of investors in the fund (similar to the shareholders’ equity discussed in this chapter). The NAV is updated at the end of each day. Thus every investor who redeems on a given day will get the same price. What does this fund’s balance sheet look like? Suppose several large investors in the mutual fund start getting nervous about market conditions and decide to redeem, all on the same day. How will these…arrow_forward
- The Montag Family purchased a house in 2020 and expects its value (in thousands of dollars) t years in the future will be well-modeled by the function V(t)=310(1.08). By what percentage does the model predict the house will increase in value each year?arrow_forwardDiscuss how MDGs and SDGs are integrated into the economic planning of Bangladesh. (hand written plz otherwise downvote)arrow_forwardThe formula for economic impact is I(r)=(A)/1-r The formula for impact change is ∆I= I'(r)*∆r The formula for percentage change is g(r)=(r)/1-rarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning