Business Statistics

Suppose that X is strictly exogenous. A researcher estimates an ADL(1,1) model, calculates the regression residual

Question: Suppose that X is strictly exogenous. A researcher estimates an ADL(1,1) model, calculates the regression residual, and finds the residual to be highly serially correlated. Should the researcher estimate a new ADL model with additional lags or simply use HAC standard errors for the ADL(1,1) estimated coefficients? Answer: Serially correlation error can generally be reduced by …

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Which types of firms are most suited to using turnkey systems contracts for their information system development?

Question: Which types of firms are most suited to using turnkey systems contracts for their information system development? Answer: In turnkey contracts, all the processes required to complete a project are assigned to a particular organization. That organization would be responsible to design and execute the project. The turnkey approach is suitable for the firms that are …

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Discuss the relative price elasticity of the following products

Question: Discuss the relative price elasticity of the following products: a. Mayonnaiseb. A specific brand of mayonnaisec. Chevrolet automobilesd. Jaguar automobilese. Washing machinesf. Air travel (vacation)g. Beerh. Diamond rings Answer: a. Mayonnaise is a normal product used along with bread for making sandwiches or similar staff. The demand for mayonnaise will not change much because …

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The following analysis was obtained using data in MEAP93.RAW, which contains school-level pass rates (as a percent) on a 10th-grade math test.

Question: The following analysis was obtained using data in MEAP93.RAW, which contains school-level pass rates (as a percent) on a 10th-grade math test. (i) The variable expend is expenditures per student, in dollars, and math10 is the pass rate on the exam. The following simple regression relates math10 to lexpend 5 log(expend): Interpret the coefficient …

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Let mvpi. be the marginal value product for worker i, which is the price of a firm’s good multiplied

Question: Let mvpi. be the marginal value product for worker i, which is the price of a firm’s good multiplied by the marginal product of the worker. Assume that log(mvpi) = β0 + β1xa + … + βkXik + ui wagei = max(mvpi,,minwagei), where the explanatory variables include education, experience, and so on, and minwagei …

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How can these retailers improve their productivity?.

Question: How can these retailers improve their productivity?.a. Travel agency.b. Neighborhood restaurant.c. College bookstore.d. Upscale apparel store. Answer: a. Travel agency can improve productivity by following the steps: • Hiring part-time workers during peak seasons. • Planning pre-packaged tours. • Providing answers to frequently asked questions on the web. b. Neighborhood restaurant can improve productivity by following …

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Why do customers have privacy concerns about frequent shopper programs

Question: Why do customers have privacy concerns about frequent shopper programs that supermarkets offer, and what can supermarkets do to minimize these concerns? Answer: Frequent shopper programs often collect a customer’s descriptive information when they sign up for a frequent shopper card.  When customers use the card at the supermarket, the firm can associate the …

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For a business firm, what type of activities does financial management involve?

Question: For a business firm, what type of activities does financial management involve? Answer: Financial management: It means planning, organizing, directing and controlling the financial activities of an enterprise. Financial management revolves around the three major functions – financing funds, investing funds and distribution of surplus. For a business firm, financial management comprises all the …

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What other regression models might be examined with the questions from

Question: What other regression models might be examined with the questions from this survey? Answer: In the given question, the plant manager of QualKote Manufacturing wants to determine whether his quality improvement program has an impact on customer satisfaction. As an initial step, he surveyed 57 employees to determine their perception of the program and …

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