Question
Hello, I need help answering the following questions: QUESTION 1 1. A linear trend model in which the dependent variable's units are thousands of dollars
Hello, I need help answering the following questions:
QUESTION 1
1.A linear trend model in which the dependent variable's units are thousands of dollars implies that the dependent variable changes
A.
Aconstant percentage each period
B.
Aconstant amount each period
C.
An increasing amount each period
D.
Adecreasing amount each period
E.
None of the above
QUESTION 2
1.A quadratic trend model (in which the dependent variable's units are thousands of dollars) in which the coefficients on both trend and trend squared are negative (such as Yt = 1000 - 10*t - 2*t2 with t going from 1 to 20) implies that the dependent variable
A.
Falls a constant amount each period
B.
Falls a smaller amount each period
C.
Falls a larger amount each period
D.
Falls a constant percentage each period
E.
None of the above
QUESTION 3
1.When deciding which of two similar linear models to implement (one model has one additional variable but other variables are identical) the single most important factor to consider would be
A.
R-squared
B.
Standard error of the estimate
C.
Coefficient significance
D.
None of the above
QUESTION 4
1.Suppose you estimate a quadratic trend model using a time series with 20 annual observations and obtain the following equation:
Yt=25+0.8t+0.04t2
The forecast value for period 21 equals:
A.
34.44
B.
378.64
C.
59.44
D.
42.64
QUESTION 5
1.Suppose you estimate a lagged model using a time series with 20 annual observations and obtain the following equation:
Yt=10+0.8Yt-1
If the value of Ytin period 20 equals 6, the forecast value for period 21 equals:
A.
10
B.
10.8
C.
14.8
D.
4.8
E.
None of the above
QUESTION 6
1.Questions 6 through 8 relate to the following. You are estimating a time series model for automobile sales. If you have 8 complete calendar years of quarterly data on auto sales (auto sales in thousands of cars) as the dependent variable and run the linear trend regression with trend and quarterly indicator variables (note sample size = 32; in the last period the trend value = 32 and t represents the "trend" variable). The regression you obtain is:
The predicted auto sales (in thousands of cars) 3 quarters after the sample ends equals (round to nearest whole car)
A.
2914
B.
2210
C.
2980
D.
3632
E.
None of the above
QUESTION 7
1.Comparing quarter1 and quarter2 auto sales to each other, holding all else constant, we would expect
A.
Quarter1 sales to be 76 thousand higher than quarter4 (excluded) sales
B.
Quarter1 sales to be 76 thousand higher than quarter2 sales
C.
Quarter1 sales to be 76 thousand lower than quarter2 sales
D.
Quarter1 sales to be 288 thousand higher than quarter4 (excluded) sales
E.
Quarter2 sales to be 364 thousand higher than quarter4 (excluded) sales
QUESTION 8
1.Do any of the quarterly dummy variables add explanatory power to the model at alpha level 0.05?
A.
Yes, because the p-value of quarter2 is below .05.
B.
No, because the R-square value is low.
C.
No, because at the p-values of quarter1 and quarter3 are above .05.
D.
Yes, because the p-value of trend is below .05.
E.
None of the above
QUESTION 9
1.A risk profile shows
A.
All possible monetary values and their associated probabilities for a single decision
B.
All possible outcomes and their associated monetary values for a single decision
C.
All possible probabilities and their associated EMVs for a single decision
D.
All possible EMVs and their associated monetary values for a single decision
E.
None of the above.
QUESTION 10
1.Questions 10 and 11 relate to the following:
Intel is deciding whether to build a new fabrication facility. The fixed cost of the facility is 2.5 billion dollars. Intel anticipates demand (and the associated production and probability) as:
Demand
Production
Probability
Low
1 million units
0.1
Medium
10 million units
0.6
High
50 million units
0.3
Intel also anticipates that gross profit (prior to considering facility costs) per unit will be $120.
The expected sales of this decision model equals:
A.
15 million units
B.
21.1 million units
C.
61 million units
D.
2532 million units
E.
None of the above
QUESTION 11
1.The expected monetary value of this decision model equals
A.
2532 million dollars
B.
3.2 million dollars
C.
32 million dollars
D.
21.1 million dollars
E.
None of the above
QUESTION 12
1.Questions 12 through 15 relate to the following. Suppose you have $20,000 to invest for 1 year and 4 possible investment options:
Option 1: Money market fund
Return = 1.2% guaranteed
Option 2: Bond fund
Return = 5% with likelihood = 10%
Return = 3% with likelihood = 30%
Return = 1% with likelihood = 60%
Option 3: Stock fund
Return = 11% with likelihood = 10%
Return = 5% with likelihood = 20%
Return 0% with likelihood = 50%
Return = -10% with likelihood = 20%
Option 4: Real Estate fund
Return = 25% with likelihood = 30%
Return = 4% with likelihood = 30%
Return = -25% with likelihood = 40%
The investment with the maximum EMV equals
A.
Money market fund
B.
Bond fund
C.
Stock fund
D.
Real estate fund
E.
None of the above
QUESTION 13
1.The investment with the smallest EMV is
A.
Money market fund
B.
Bond fund
C.
Stock fund
D.
Real estate fund
E.
None of the above
QUESTION 14
1.The maximax investment is:
A.
Money market fund
B.
Bond fund
C.
Stock fund
D.
Real estate fund
E.
None of the above
QUESTION 15
1.The maximin investment is
A.
Money market fund
B.
Bond fund
C.
Stock fund
D.
Real estate fund
E.
None of the above
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