Statistical signigicance, Managerial Economics

Assignment Help:
A study of 86 savings and loan associations in six northwestern states yielded the following cost function.
I''ve been given the following data;
C=2.38- .006153Q1 + .000005359Q2 + 19.2X1
we were given the t-stats in same order.
2.84 2.37 2.63 2.69
C= ave. operating expense ratio, expressed as a percentage and defined as total operating expense ($million) divided by total assets ($million) times one hundred percent.
Q= output, measured by total assets ($million)
X1= ratio of the number of branches to total assets ($million)
We need to know:
A. which variables is (are) statistically significant in explaining variations in the average operating expense ratio?
B. What type of cost-output relationship (e.g., Linear, quadratic or cubic) is suggested by these statistical results?
C. Based on these results, what can we conclude abut the existence of economies or diseconomies of scale in saving and loan associations the northwest.

Related Discussions:- Statistical signigicance

Methods of demand forecast which rely on quantitative data, Methods which r...

Methods which rely on quantitative data: Rule-based forecasting Data mining Quantitative analogies Discrete event simulation Neural networks Extrapo

Problem, Calculate point elasticity of demand for demand function Q=10-2p f...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2 . Thanks a lot!

Demand, what is demand estimation

what is demand estimation

Explain classical and keynesian theories, Problem : (a) Describe inflat...

Problem : (a) Describe inflation and discuss its origin using Classical and Keynesian theories. (b) Describe with diagram how can inflation occur in an economy with substant

Economic Model of a Company, I can''t figure out the economic model of a co...

I can''t figure out the economic model of a company that I''m supposed to write a report about. The company is a tier 2 supplier, and over the years has bought out several subsidia

Types of elasticity, what are the examples of the types of elasticity (pri...

what are the examples of the types of elasticity (price,income & cross elaticity

Equilibrium quantity, Consider an industry with a sole producer, a monopoli...

Consider an industry with a sole producer, a monopolist. The latter faces cost function C(Q)= Q/2 and aggregate (inverse) demand P(Q)=1 - Q (zero for Q> 1). Illustrate all your ans

Calculate the percentage of the disk space that must be free, Free disk spa...

Free disk space can be kept track of using a free list or a bit map. Disk addresses require D bits. For a disk with B blocks, F of which are free, state the condition under which t

Monetary policy, Monetary policies This is the direction of the econom...

Monetary policies This is the direction of the economy through the variables of money supply and the price of money.  Expanding the supply of money and lowering the rate of in

Write Your Message!

Captcha
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