Question 7: The following regressions are based on the CPI data for the United States for theperiod 1960–2007, for a total of 48 annual observations:1.ACPI, = 0.0334CPI,-1t = (12.37)R? = 0.0703 d=0.3663RSS = 206.652.ACPI, = 1.8662 + 0.0192CPI-1t = (3.27)(3.86)R² = 0.249d = 0.4462RSS = 166.9213.ACPI; = 1.1611 + 0.5344, – 0.1077CPI-1t = (2.37)(4.80)(-4.02)R? = 0.507 d=0.6071RSS = 109.608where RSS = residual sum of squares.Examining the preceding regressions, what can you say about stationarity of the CPI time series?

Stationary Stochastic processes are those process which have a constant mean and constant variance…

Question 7: The following regressions are based on the CPI data for the United States for the period 1960–2007, for a total of 48 annual observations: 1. ACPI, = 0.0334CPI,-1 t = (12.37) R? = 0.0703 d=0.3663 RSS = 206.65 ACPI; = 1.8662 + 0.0192CPI,-I t = (3.27) (3.86) R? = 0.249 d = 0.4462 RSS = 166.921 ACPI, = 1.1611 + 0.5344, – 0.1077CPI,–1 t= (2.37) (4.80) (-4.02) R? = 0.507 d= 0.6071 RSS = 109.608 where RSS = residual sum of squares. Examining the preceding regressions, what can you say about stationarity of the CPI time series? 2. 3.

Question 7: The following regressions are based on the CPI data for the United States for the period 1960–2007, for a total of 48 annual observations: 1. ACPI, = 0.0334CPI,-1 t = (12.37) R? = 0.0703 d=0.3663 RSS = 206.65 ACPI; = 1.8662 + 0.0192CPI,-I t = (3.27) (3.86) R? = 0.249 d = 0.4462 RSS = 166.921 ACPI, = 1.1611 + 0.5344, – 0.1077CPI,–1 t= (2.37) (4.80) (-4.02) R? = 0.507 d= 0.6071 RSS = 109.608 where RSS = residual sum of squares. Examining the preceding regressions, what can you say about stationarity of the CPI time series? 2. 3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The following table represents the thallium production and apparent consumption in the United States for the years 2004 through 2010. Unit value is the value in actual dollars of one metric ton (t) of thallium apparent consumption. With 2004 as the base year, adjust the unit value in actual U.S. dollars to the unit value in constant 2004 U.S. dollars (2004$).
The most common use of the CPI is as an economic Indicator to forecast Inflation and evaluate the effectiveness of government policies. Using the monthly CPI (seasonally adjusted) from January 2007 to May 2013, the estimated regression is: CPI-206+0.0346t, where t= 1, 2,...77 to represent the months in the series. Which statement below is true? O The Intercept is an estimate of CPI for 2013 O The Intercept is an estimate for the average value of CPI in January. O The estimate value of CPI In January 2007 is about 206.03 The Intercept is the value of CPI in January 2007.
Year Quarter Revenue Q1 4.80 Q2 4.56 2015 Q3 4.88 Q4 4.91 Q1 5.37 Q2 4.99 2016 Q3 5.24 Q4 5.71 Q1 5.73 Q2 5.29 2017 Q3 5.66 Q4 5.70 Q1 6.07 Q2 6.03 2018 Q3 6.31 Q4 6.30 Q1 6.60 Q2 6.31 2019 Q3 6.82 Q4 6.75 Q1 7.10 Q2 6.00 2020 Q3 4.20 Q4 6.20
Questions 6 & 7: A model for the Consumer Price Index (CPI) for the period July 2005 (t = 0) to March 2006 (t = 8), where t is in months, is given by the function, (t) = 0.06t³ -0.8t² +3.1t + 195 Use the model to answer Questions 6 and 7 below.
Suppose sales for the past 6 months have been100, 106, 87, 102, 87, and 104 Using a smoothing coefficient of 0.9, what is the exponentially smoothed value for the 4th period? (please round your answer to 1 decimal place)
A country in Southeast Asia states it's gross domestic product in terms of yen. Last year it's GDP was 50 billion yen when one U.S. dollar could be exchanged into 120 yen. Required : Assume the GDP increases to 55 billion yen for this year. However, the dollar value of one yen is now $0.01. Determine the country's GDP in terms of U.S. dollars for this year.
Quarter 1 2 3 Actual Quarterly Sales Based on the above chart and assuming that without seasonality each quarter will have equal demand: The Seasonal Index for QT1 is Submit Answer format: Number: Round to: 2 decimal places. 141.00 180.00 255.00 230.00
The following table shows the average annual income in a certain country, adjusted for inflation, for the given year. t = years since 1980 I= annual income 0 $23,009 5 $23,016 10 $25,284 15 $26.494 20 $30,819 25 $30,350 30 $28,738 (a) Find the equation of the regression line. (Round regression line parameters to two decimal places.) I(t) = 62.48t+22810 x > (b) Plot the data along with the regression line.
Question 22 A computer depreciates 32% per year. A computer is bought for $1200. What is an equation to model this where V is the value of the computer and t is the years that passs since it is bought. Ov= 1200(-0.32)t OV= 1200(0.32) OV = 1200(1.32) OV = 1200(0.68) Question 23 A computer depreciates 32% per year. A computer is bought for $1200. What is an equation for the year since the comupter is bought as a function of the computer's worth? Ot=10g0.68 (1200)
You estimated the following regression. What value would you predict for Y, if X = 81? (Round your final answer to zero decimal places.) Source | SS df MS Number of obs = 204 -------------+---------------------------------- F(1, 202) = 406.05 Model | 6131684 1 6131684 Prob > F = 0.0000 Residual | 3050340.21 202 15100.6941 R-squared = 0.6678 -------------+---------------------------------- Adj R-squared = 0.6661 Total | 9182024.21 203 45231.6463 Root MSE = 122.88 ------------------------------------------------------------------------------ Y | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- X | 40.27997 1.998931 20.15 0.000 36.33853 44.22142 _cons | 192.9333 120.837 1.60 0.112…
D. MoviefliX, an online movie streaming service that offers a wide variety of award-winning TV shows, movies, animes, and documentaries would like to determine the mathematical trend of memberships in order to project future needs. Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 Membership 17 16 16 21 20 20 23 25 24 (000s) (i) Use the following time series data, to develop a regression equation relating memberships to time. (ii) Forecast 2023 membership.
A researcher has a sample of 6 annual observations {94, 104, 102, 99, 111 and 107} for the CPI in country Z for the period 2015 to 2020, and wants to forecast CPI for the years 2021, 2022 and 2023. The researcher uses 3 different forecasting models: A, B and C. Model A is an AR(1) model with no drift and with an estimated autoregressive coefficient = 0.7. Model B is a MA(1) model with no constant and with an estimated MA coefficient = -0.4 (note the minus !). Model C is a random walk model with no drift. The error terms over the 2015-2020 period were estimated to have the values: {3, -1, 2, 4, -3, 1}. a. Compute the 2021, 2022 and 2023 forecasted values for the consumer price index based on the three models. Show the formulas and the details of your calculations, and explain all the related symbols. b. Suppose that the actual values of the CPI over the 2021, 2022 and 2023 were {108, 114, 105}. Calculate the Root mean square error of the three model forecasts over the 2021-2023…