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Question: a. Estimate an AR(1) model for ?Yt. What is the estimated AR(1) coefficient? Is the coefficient statistically significantly different from zero? Construct a 95% confidence interval for the population AR(1) coefficient.
b. Estimate an AR(2) model for ?Yt. Is the AR(2) coefficient statistically significantly different from zero? Is this model preferred to the AR(1) model?
c. Estimate AR(3) and AR(4) models. (i) Using the estimated AR(1) through AR(4) models, use BIC to choose the number of lags in the AR model. (ii) How many lags does AIC choose?
Penny is making pipe cleaner flowers to sell on Etsy for $1 apiece. Penny and her friends become more efficient as they gain practice in flower production. The first 100 flowers cost $1.50 apiece. The next 100 cost $1.25 apiece. The next 100 cost $1...
Write a brief report describing how they are implementing the lean manufacturing philosophy and state whether their operations conform to the US Environmental Agency guidelines. Why or why not?
Find a minimal edge coloring of the following graphs (color edges so that edges with a common end vertex receive different colors).
Distinguish between an econometric and mathematical model
What determines the vertical intercept of the Security Market Line (SML)? What determines its slope? And what will happen to an asset’s price if it initially plots onto a point above the SML?
Describe how high entry barriers into a market will influence long-run profitability of the firms
"People lined up on the veranda of the American mission hospital here from miles around to barter for doctor visits and medicines, clutching scrawny chickens, squirming goats and buckets of maize." Why wouldn't the people buying medical services a..
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. How much labor does he employ if the price of each pizza is p = $12 and the hourly wage is w0 = $6? [Hint: In this case, i..
How can Technology change effect the productivity of labour?
Suppose a firms production function is given by Q= L^1/2 * K^1/2. The marginal product of labor and the marginal product of capital are given by: MPL= K^1/2 /2L^1/2 and MPk= L^1/2/2K^ 1/2.
The operating cost is expected to follow the series described by 40,000 + 10,000k, where k is the number of years since it was purchased (k = 1 through 7). The salvage value is estimated to be $30,000 for years 1 and 2 and $20,000 for years 3 thro..
Determine how much tax revenue is generated by the tax and what the tax incidence on tax is on consumers and producers. need to indicate new price points and quantities.
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