Estimate the trend in units per year

Assignment Help Econometrics

Reference no: EM1376301

A linear trend equation for sales of form Qt = a + bt was estimated using yearly sales information for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of regression are given below:

DEPENDENT QT R Square F Ratio P-Value on F
VARIABLE:

OBSERVATIONS: 8 0.7034 14.23 0.0093
PARAMETER STANDARD
VARIABLE ESTIMATE ERROR T-RATIO P-VALUE
INTERCEPT -23,024,200 8,122,205 -2.83 0.0298
T 12,045 6075 1.98 0.0947

a. Do the estimates indicate a trend in sales? If so, what is the trend in units per year? Explain.
b. What would you forecast sales to be in the year 2008? Explain.
c. What would you forecast sales to be in the year 2010? Explain.

Reference no: EM1376301

Questions Cloud

Estimating demand : When testing whether each of independent variables in a multiple regression equation is statistically significant in describing variations in the dependent variable,

Preparing cad geometry for fea : Demonstrate suitable accuracy by using a simple hand calculation for the static analysis of the structure. Describe in detail the hand calculations performed to validate the final solution. What is the approximate error between the simplified hand..

Analyzing regression results : A multiplicative demand function form: Qd= a*P^b1*Y^b2*Po^b3 is determine using cross sectional data and 224 observations. The regression results were given below:

Compute point price elasticity of demand : Run OLS to estimate the inverse demand function(P = f(Q)), determine how much confidence do you have in this estimated equation? Apply algebra to then find the direct demand function

Estimate the trend in units per year : A linear trend equation for sales of form Qt = a + bt was estimated using yearly sales information for the period 2000 - 2007. The results of regression are given below:

Estimate the value of for sales level : Over the last one year the Four Winds Novelty Corporation has recorded its internet sales and its monthly total variable costs for a particular novelty item as demonstrate in the following table.

Interpretation for the regression coefficient : Chez Henri is a restaurant chain that operates in forty different cities. It employed an economist to determine the factors affecting the demand for its sales.

Computing the four firm concentration ratio : Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.

Determine the outlook of fictitious economy : According to the following economic indicators, estimate the outlook of this fictitious economy. Although I know what these indicators mean,

User Account

All Pages