User Account

All Pages

Run a simple linear regression of the severity index

Assignment Help Finance Basics
Reference no: EM133076788

Problem: Ref Year Severity Index Google Trends 1 107.22 15.16 2 102.41 26.33 3...

Ref Year

Severity Index

Google Trends

1

107.22

15.16

2

102.41

26.33

3

100

22.83

4

94.31

15.67

5

88.85

14.58

6

85.26

13

7

80.53

12.83

8

74.5

12.58

9

73.01

14.33

10

66.92

17.41

11

65.38

17.5

12

68.44

17

13

70.1

17.5

14

70.67

16

15

72.16

17

The data reported in the Excel file CrimeSeverity comprises two variables, namely, Severity Index (which represents the non-violent crime severity index obtained from Statistics Canada's CANSIM database) and Methamphetamine (which represents the Google Trends search index in Canada using methamphetamine as the keyword). The yearly data covers the period from 2004 (the first available Google Trends data) to 2018.

  1. Draw a scatterplot of the relationship between the Severity Index and methamphetamine search index and comment on the relationship between the two variables.
  2.  Use GRETL to compute the correlation between the Severity Index and methamphetamine search index and comment on the relationship between the two variables.
  3. Run a simple linear regression of the severity index (the dependent variable) on the methamphetamine search index (the independent variable). Based on this regression results, do you think that the search index is a useful predictor of the severity index? Hint: you could look at the estimated slope coefficient as well as goodness-of-fit as measured by R-squared.
  4. Interpret the R-squared value you obtained in part (c). Hint: R-squared is the percentage of the variation in the dependent variable explained by variation in the independent variable(s).

Reference no: EM133076788

Questions Cloud

What is the expected return on your portfolio : The covariance between the returns on the two assets is 0. If you invest $30 in A and $70 in B, what is the expected return on your portfolio
Expected future exchange rate : Using numbers and a time diagram for the exchange rate, explain how an exogenous increase in the U.S. interest rate from 6% to 9% affects the exchange rate in t
Determine the annual costs of ordering : Mickey Grocery Store specializes in gourmet sauces that are purchased from overseas. The purchasing cost of a special brand of sauce is $10 per jar and requires
Savings rate consistent with the golden rule : Answer the following questions True, False, or Uncertain. Briefly explain your answers. No credit without explanation.
Run a simple linear regression of the severity index : The data reported in the Excel file CrimeSeverity comprises two variables, namely, Severity Index (which represents the non-violent crime severity index obtaine
What is the value of the bond upon issuance : Silver Corporation issued a five-year, P1,000 non-callable bond which pays P40 semi-annually on June 30, 2015. What is the value of the bond upon issuance
Market structures directions : Part II. Identification: Market Structures Directions. Read the questions carefully. Identify the type for each item.
Discussions about global business ethics : Imagine that you work for a large, global company that builds power plants for electricity. This industry has a long-term perspective and requires stable, relia
Social determinants of health : Among the social determinants of health (SDOH) are (1) Economic Stability; (2) Education Access and Quality; and (3) Health Care Access and Quality.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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