## Managerial Economics Study Set 1

Business

## Quiz 4 :

Basic Estimation Techniques

Looking for Economics Homework Help?

Q21 Q21 Q21

Questions 22 through 25 refer to the following:
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results:
-Which of the following is correct at the 1% level of significance?

Free

Unlocked

Multiple Choice

Q22 Q22 Q22

Questions 22 through 25 refer to the following:
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results:
-Hiring one more guard per week will decrease the losses due to theft at the warehouse by _________ per week.

Free

Unlocked

Multiple Choice

Q23 Q23 Q23

Questions 22 through 25 refer to the following:
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results:
-the firm hires 6 guards and the unemployment rate in the county is 10% (U = 10), what is the predicted dollar loss to theft per week?

Free

Unlocked

Multiple Choice

Q24 Q24 Q24

Questions 22 through 25 refer to the following:
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results:
-one percent increase in the level of unemployment in the county results in an increase in losses due to theft of __________ more losses per week.

Free

Unlocked

Multiple Choice

Q28 Q28 Q28

Suppose you are testing the statistical significance (at the 5% significance level) of a parameter estimate from the estimated regression equation: Y = a + bR + cS + dW
Which is estimated using a time-series sample containing monthly observations over a 30month time period. The critical value of the appropriate test statistic is

Free

Unlocked

Multiple Choice

Q29 Q29 Q29

Suppose you are testing the statistical significance (at the 1% significance level) of a parameter estimate from the estimated regression model: M = a + bR + cI
Which is estimated using a crosssection data set on 22 firms. The critical value of the appropriate test statistic is

Free

Unlocked

Multiple Choice

Q46 Q46 Q46

Questions 47 through 50 refer to the following:
A manager wishes to estimate an average cost equation of the following form:
where Q is the level of output. Letting Z = Q

^{2}and using least-squares estimation, the manager obtains the following computer output: -Which of the parameter estimates are statistically significant at the 1% significance level?Free

Unlocked

Multiple Choice

Q47 Q47 Q47

Questions 47 through 50 refer to the following:
A manager wishes to estimate an average cost equation of the following form:
where Q is the level of output. Letting Z = Q

^{2}and using least-squares estimation, the manager obtains the following computer output: -value of R^{2}indicates that _______ of the total variation in C is explained by the regression equation.Free

Unlocked

Multiple Choice

Q48 Q48 Q48

Questions 47 through 50 refer to the following:
A manager wishes to estimate an average cost equation of the following form:
where Q is the level of output. Letting Z = Q

^{2}and using least-squares estimation, the manager obtains the following computer output: -output is 40 units, what is average cost?Free

Unlocked

Multiple Choice

Q49 Q49 Q49

Questions 47 through 50 refer to the following:
A manager wishes to estimate an average cost equation of the following form:
where Q is the level of output. Letting Z = Q

^{2}and using least-squares estimation, the manager obtains the following computer output: -output is 20 units, what is average cost?Free

Unlocked

Multiple Choice

Q50 Q50 Q50

simple linear regression equation relates G and D as follows:
G = a + bD
a. The explanatory variable is _______, and the dependent variable is ________.
b. The slope parameter is ______, and the intercept parameter _______.
c. When D is zero, G equals _______.
d. For each one-unit increase in D, the change in R is ______ units.

Free

Unlocked

Essay

Q51 Q51 Q51

linear regression equation G = a + bD is estimated using 24 observations on R and W. The least-squares estimate of b is 22.5, and the standard error of the estimate is 8.36. Perform a t-test for statistical significance of at the 1% level of significance.
a. There are _____ degrees of freedom for the t-test.
b. The value of the t-statistic is _________. The critical t-value for the test is _________.
c. The parameter estimate
_________ (is, is not) statistically significant at the 1% level.

Free

Unlocked

Essay