Provide an elaborate solutions to the following attachments.
1. We use the added variable technique to derive the variance ination factor (VIP). Consider a linear model of the form 91' =50+l31$1+l3213922+-"+}3p$a'p+zr, 5'3: 1:"'ana (1) where the errors are uncorrelated with mean zero and variance 02. Let X denote the n X p' predictor matrix and assume X is of full rank. We will derive the VIP for ip. The same derivation applies to any other coefcient simply by rearranging the columns of X. Let U denote the matrix containing the rst p' 1 columns of X and let z denote the the last column of X so that X = [U 2]. Then we can write the model in (1) as 50 x91 Y=[U z](,:J)+t-:=Ua+z6p+e with a: (2) x810. 1 Let 2 denote the vector of tted values from the least squares regression of z on the columns of U (Le. the regression of X.p on all the other variables), and let T : z 2 denote the residuals from that regression. Note that 'r' and 3 are not random, they are constant vectors obtained by linear transformations of z. (a) Show that the regression model in (2) can be rewritten in the form for some constant vector 6 of the same length as a. (Hint: z : i l 'r and 2? = U(UTU)_1UTz). (b) Show that UT? 2 0, a zero vector. (0) Obtain simplied expressions for the least squares estimators of 5 and 5?, showing, in particular, that 5,, : 'rTY/rT'r. (d) Based on Part (c) and the model assumptions, show that 0.2 ELK\"? _ is)? where :Eg-p is the LS tted value from regression X,D on the all the other predictor variables with an intercept. var(,p) : Homework for Chapter 10: Problem # 1 in the text (Chapter 10) NOTE: PLEASE USE THE ATTACHED EXCEL FILE TITLED "Homework for Chapter 10_Excel" TO SOLVE THE FOLLOWING PROBLEM. You are considering the following bonds to include in your portfolio: Bond 1 Bond 2 Bond 3 Price $900.00 $1,100.00 $1,000.00 Face Value $1,000.00 $1,000.00 $1,000.00 Coupon Rate 7.00% 10.00% 9.00% Frequency 2 4 Maturity (Years) 15 20 30 Required Return 9.00% 8.00% 9.00% a) Determine the highest price you would be willing to pay for each of these bonds using the PV function. Also find whether the bond is undervalued, overvalued, or fairly valued (25 points). b) Determine the yield to maturity on these bonds using the RATE function assuming that you purchase them at the given price. Also calculate the current yield of each bond (25 points). c) Determine the yield to call of each bond using the RATE function if the time to first call and the call premium are the following (25 points): Bond A Bond B Bond C Call Premium % 3.00% 4.00% 5.00% Years to first call 5 4 3 d) Assume the following settlement dates for each bond: Bond 1 Bond 2 Bond 3 Settlement Date 1/1/2018 6/1/2018 9/1/2018 Use the PRICE and YIELD functions to recalculate your answers on parts (a), (b), and (c) (25 points).46. Describe the role and functions of a federal administrative agency 47. General procedures to be used in administrative agencies are set forth in the Act. 48. Administrative agencies are created by 49. The enforcement function performed by administrative agencies checks an industry's compliance with enacted by the agency- 50. Agencies may subpoena witnesses and obtain documents from a regulated company if 51. A company may refuse to comply with an agency request for records based on its Fifth Amendment right to avoid self-incriminatingue or False? 52. What is judicial review of a decision issued by an administrative law judge (AL]? 53. One of the grounds that can be raised to challenge an AL's decision is 54. The public may obtain access to agency information by filing a request under the Act. 95. Criminal law is different from lawsuits between private parties in that 56. Businesses must protect themselves from crimes "from the inside" such as 57. The two elements of a crime are actus reus and 58. Penalties for the commission of a crime may include 59. If a defendant does not testify, the prosecution may argue to the jury that this shows he is guilty. True or False? 60, A nonviolent crime such as fraud does not have a victim, True or False? 61. If a trial ends in a mistrial because the jury could not reach a unan defendant may not be tried again under the Double Jeopardy clause. True or False? 62. The constitutional right to compel the attendance of witnesses in a criminal trial is satisfied by a court's bsuance of
