# Managerial Econ Chapter 5

Pages: 10 (1680 words) Published: May 28, 2011
An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient? Choose one answer.

| a. 2 | |
| b. 0.5 | |
| c. 5 | |
| d. 1 | |
Correct
Marks for this submission: 1/1.
Question 2
Marks: 1
Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity? Choose one answer.
| a. -1.5, elastic | |
| b. 1.5, inelastic | |
| c. 12, elastic | |
| d. 120, elastic | |
Incorrect
Marks for this submission: 0/1.
Question 3
Marks: 1
The method of forecasting with leading indicators can be criticized for Choose one answer.
| a. frequent revisions of data after original publication. | | | b. occasionally forecasting a recession when none ensues. | | | c. forecasting the direction of the economy but not the size of the change in economic activity. | | | d. All of the above | |

Correct
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Question 4
Marks: 1
Regression analysis can best be described as
| a. a statistical technique for creating functional relationships among variables. | | | b. a statistical technique for determining the true values of variables. | | | c. a statistical technique for estimating the best relationship between one variable and a set of other selected variables. | | | d. None of the above | |

Incorrect
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Question 5
Marks: 1
The forecasting technique which involves the use of the least squares statistical method to examine trends, and takes into account seasonal and cyclical fluctuations, is known as Choose one answer.

| a. exponential smoothing projection. | |
| b. compound growth rate projection. | |
| c. the Delphi method. | |
| d. time series projection. | |
Correct
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Question 6
Marks: 10
Scenario 1: The demand model relating the quantity of good XYZ sold (QXYZ) to the price of good (PXYZ) is reported below:
QXYZ = 4.46 + .304 PXYZ

CoefficientStandard Error
4.463.04
.304.3243

Analysis of Variance:
SourceDFSum of Squares
Regression 141.9
Residual3718.9
Total24

a. Refer to Scenario 1. What is the t-statistic for the slope coefficient? b. Refer to Scenario 1. Is the slope coefficient statistically different from zero? explain concisely with your calculation. c. Refer to Scenario 1. What is the total sum of squares?

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Question 7
Marks: 1
In the estimation of demand, the "identification problem" refers to Choose one answer.
| a. the problem of having insufficient variation in prices. | | | b. the problem of separating out the effects of price on the quantity demanded when supply cannot be held constant. | | | c. the problem of deciding whether to use time series or cross-sectional data. | | | d. the problem of selecting the proper level of significance. | | Correct

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Question 8
Marks: 1
A dummy variable is also called
| a. a zero-sum variable. | |
| b. an approximate variable. | |
| c. a discrete variable. | |
| d. an improper variable. | |
Incorrect
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Question 9
Marks: 1
A manager will have the least confidence in an explanatory variable that Choose one answer.
| a. constitutes only a small part of R2. | |
| b. does not pass the F-test. | |
| c. is expressed as a dummy variable. | |
| d. does not pass the t-test. | |
Incorrect
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Question 10
Marks: 1
Answer the following questions on the basis of the following regression equation. (Standard errors in parentheses,...