Problem 1 the file the natural log of the average 1989

Assignment Help Macroeconomics
Reference no: EM13373348

Problem 1. The file the natural log of the average 1989 prices (logprice) of Bordeaux wines for the vintages 1952 to 1989. (vintage) . the age of each vintage is given by the variable age. These data were part of an analysis of Bordeaux wine by economists OrleyAshenfelter and David Ashmore of princeton university. On the computing of the data, some observations became Not available, NA. Clear those up by deleting them, but the couple that are in between observations, just do the average between the two adjacent observations.

a. create a scatterplot with age on the horizontal axis and the log of price on the vertical axis. Do older wines tend to sell for more than younger wines? Does an older wine always sell for more than a younger wine?

b estimate the relationship logprice = a +b(age)

c. estimate the relationship logprice = a + b(vintage) how does the estimated coefficient on vintage compare with the estimated coefficient of age. Why do the intercepts differ as they do?

d. tell me if the intercepts of each equation and estimates of the slopes are statistically significant. (you can use the rule of 2)

Problem 2. The file contain the natural log of the quantity of white zinfandale (LNQWZ) and the natural log of the own price of white zinfandale (LNPWZ) as well as the natural log of the price of other varieties of wines (LNPCH, LNPM, and LNPCS) It additionally includes a time variable called time, and the level data on quantity and prices which you wont be using this time.

a. copy the data from ch 5 data set into a new excel file that you create and run a regression of the data that has already been converted to logs for you in th form lnqwz = a + b*lnpwz + c*lnpch + d*lnpm +e*lnpcs+f*time+g*peak.

b. from the regression output, identify which of the explanatory variables are statistically significant. what does it mean for a variable to be statistically significant.

c. report the R-squared and provide me with the correct interpretation of this number. what information does it tell me?also report the adjusted R-squared of the regression. why is it necessary to report an adjusted R-quared?

d. from the regression output, tell me what the price elasticity of demand and cross price elasticities of demand are and interpret those numbers. that is, are the goods substitutes compliments and so on using what you learned in your previous lessons and keeping in mind the interpretation of the coefficients as per the discussion in the appendix. Don't forget to use the information about statistical significance from part b to conclude whether goods are related or not related.

f. Identify whether there is a trend that we can identify from the data regarding wine sales. hint, use the coefficient for the time variable to make your assessment. is this trend statistically significant?

Download:- Data file.rar

Reference no: EM13373348

Questions Cloud

Reflective paperthe reflective paper should demonstrate : reflective paperthe reflective paper should demonstrate understanding of the reading assignments as well as the
If a pool of workers 60 are low-productivity workers with : if a pool of workers 60 are low-productivity workers with an estimated present value of lifetime output equal to
1when would being first be a valuable strategy2what does it : 1.when would being first be a valuable strategy?2.what does it mean to say that economics focuses on the margin? what
The yen and the dollarthe value of foreign deals struck by : the yen and the dollarthe value of foreign deals struck by japanese buyers in 2010 has nearly doubled to 21.77 billion.
Problem 1 the file the natural log of the average 1989 : problem 1. the file the natural log of the average 1989 prices logprice of bordeaux wines for the vintages 1952 to
Need a five page paper on an economic topic from the wall : need a five page paper on an economic topic from the wall street journal using apa format. the paper needs to include
Government in the economyais there benefit for government : government in the economya.is there benefit for government involvement in the microeconomy? if so what is it? if not
Macropoland a country that is a natural gas and oil : macropoland a country that is a natural gas and oil importer has a natural rate of unemployment at the full employment
Time traveling art historian book chaptersyou are a : time traveling art historian book chaptersyou are a world-renowned art historian and author with the ability to time

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd