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

Define managerial economics according to mcnair and meriam, Define Manageri...

Define Managerial economics according to McNair and Meriam McNair and Meriam:  "Managerial economics comprises the use of economic modes of thought to analyse business situatio

Balance of payments, BALANCE OF PAYMENTS The Balance of Payments of a ...

BALANCE OF PAYMENTS The Balance of Payments of a country is a record of all financial transactions between residents of that country and residents of foreign countries.  (Resi

Measurement of inflation, Measurement of Inflation The rate of inflati...

Measurement of Inflation The rate of inflation is measured using the Retail Price Index.  A retail Price Index aims to measure the change in the average price of a basket of g

Marris’ Growth Maximisation Model, #question.Constraints of Marris’ Growth...

#question.Constraints of Marris’ Growth Maximisation Model

Marijuana, Plot the demand schedule and draw the demand curve for the data ...

Plot the demand schedule and draw the demand curve for the data given for Marijuana in the case above.

Advertising budget, Analyse The Method By Which a Firm Can Allocate The Giv...

Analyse The Method By Which a Firm Can Allocate The Given Advertising Budget Between Different Media Of Advertisement

PRODUCTION THEORY, Q=5K0.4 L0.6 WHERE K is number of mchine,L s number of l...

Q=5K0.4 L0.6 WHERE K is number of mchine,L s number of labour, price of unit is RM24 & wages og each lanour rm12. the company constraint by it budget rm 1500 per time period. a) co

Managerial principles, managerial principles to consider when determining l...

managerial principles to consider when determining level of output of afirm

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