 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 loglinear 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
Marks for this submission: 1/1.
Question 4
Marks: 1
Regression analysis can best be described as
Choose one answer.
 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
Marks for this submission: 0/1.
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
Marks for this submission: 1/1.
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 tstatistic 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?
Answer:

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 crosssectional data.    d. the problem of selecting the proper level of significance.   Correct
Marks for this submission: 1/1.
Question 8
Marks: 1
A dummy variable is also called
Choose one answer.
 a. a zerosum variable.  
 b. an approximate variable.  
 c. a discrete variable.  
 d. an improper variable.  
Incorrect
Marks for this submission: 0/1.
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 Ftest.  
 c. is expressed as a dummy variable.  
 d. does not pass the ttest.  
Incorrect
Marks for this submission: 0/1.
Question 10
Marks: 1
Answer the following questions on the basis of the following regression equation. (Standard errors in parentheses,...