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- Is auto correlation possible in cross-sectional data? why?3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: Year DUIRate;; = atate +a? + BTreatmentt +yControl;t + Eit i Which of the following changes does Boyoung need to make? a) She should include a constant in the regression equation. b) She should not include controls because they're already accounted for by fixed effects. c) She should include a time trend instead of time-fixed effects. d) None of the above are changes she needs to make.← Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values: Price $2.50 $3.50 $1.90 $4.20 $3.20 $4.10 Number Sold 760 515 980 250 320 490 D Using simple linear regression and given that the price per cup is $1.75, the forecasted demand for mocha latte coffees will be 1862.8 cups (enter your response rounded to one decimal place). 88
- The following table represents the selling price of a pair of sneakers sold by the Spelete Galore Sneaker Shop and the number of pairs of sneakers sold at that price: Price of a pair of sneakers (x) Number of pairs of sneakers sold (y) 400 750 1 200 1 800 25 17 12 8 The shop suspects that there is a linear relationship between the number of pairs of sneakers sold and the price of a pair of sneakers. What will the estimated number of pairs of sneakers sold be if a pair of sneakers costs R900? OA. 15 OB. 5 OC. 20 OD. 17Based on some careful market analysis you have hypothesised that the demand for breakfast cereal can be modeled as where Y is the monthly consumption of cereal for a family of four, X1 is the price of cereal per Kg.X2 is the family income and X3 is the price of eggs per dozen. You have arandom sample of 200 families which contains measurements of the variable for each family. Explain how you wuld determine the effect of the price of eggs on the sales of breakfast cereal given the effects of family income and the price of breakfast cereal given the effects of family income and the price of breakfast cereal.Given the following data X (consumers of teff) or popn 3 6 8 1 13 13 14 Y ( teff consumption) 8 6 10 12 12 14 20 year 2013 2014 2015 2016 2017 2018 2019 Estimate the regression equation, Y= a+bX, Where Y denotes demand for teff while X is consumers of teff (population) By assuming demand for teff is only affected by its consumers, find the amount demand for teff in the year 2022 if the populations (consumers of teff) are about 18 people? (Hint: use the least square method, parameter a and b can be estimated by solving the two linear equations) SY= na+ bSX SXY=aSX +b Where n is number of years. For example, Estimate the sales for 2012, 2015 and fit a linear regression equation and draw a trend line.ar X Sales (Y) XY X2 year X Sales (Y) XY X2 2002 1 22734 22734 1 2003 2 24731 49462 4 2004 3 31489 94467 9 2005 4 44685 178740 16 2006 5 55319…
- As you know, the consumption of opioids in the US has been matter of great medical concern. A study has suggested that the consumption of drugs starting 3 years ago, can be modeled by the equation: 100001? C=- 1' +7 +280 Where C= consumption in thousands of drug pills t = time in years, starting 3years ago Discuss the proposed mathematical model by addressing the following points shown by the model: a) Determine whether the consumption of drugs is, at present, still increasing or has started to decrease. b) Based on your finding of aspect a), when "did" or "will" the consumption of drugs peak? C) Also, based on your finding of aspect a), what would you report be in reference to the rate of consumption at present? Use a graph utility to plot the function and illustrate the discussion.Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values: Price $2.50 $3.60 $1.90 $4.10 $3.10 $4.10 Number Sold 760 515 980 245 325 490 Using simple linear regression and given that the price per cup is $1.85, the forecasted demand for mocha latte coffees will be cups (enter your response rounded to one decimal place).The following data from a random sample of individuals that are 25 years old. Note, wage is the hourly earnings in US dollars and educ is years of education. i 1 2 3 4 wage 12.18 12.18 20.09 7.39 educ 13 11 16 12 Consider the following model: In(wage)-Bo+B₁educ+u. Calculate the estimate of B₁. Round your answer to two decimal places.
- da 13 Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the a non presence of an elevator in the building. To this end, he wants to regress the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0). data Unfortunately, he makes a mistake so that he uses the original dummy divided by 100, so a variable that takes value 0.01 if there is an elevator in the building and 0 if not. agio max ontrassegna How the estimated value of the coefficient of the dummy will be affected by this mistake: nda O (a) It will be multiplied by 100 O (b) It will be divided by 100 O (c) It will change according to the proportion of flats in buildings with and without elevator O (d) None of the above Precedente SuccessivoIn the Managerial Solution, we estimated a focus group's demand curve for iTunes downloads. The estimated coefficient on price was-413, and the 1-statistic was -12.8. nage d coe ndard Using these values, what is the standard error of this estimated coefficient? est The standard error of the price coefficient is (Enter your response rounded to two decimal places) Suppose we had another focus group sample, ran a regression on that sample, and obtained the same coefficient on price but with a standard error five times as large What can you say about the statistical significance of the price coefficient in this second sample? rt A The price coefficient would be statistically significantly different than zero at the 0.05 confidence level Sulag 50,00 t-Val Stan would be would not beWhich of the following are monotonic transformations? Please explain. 1) u = v² 2) u = lnv 3)u = -e^-v