Q: is this time series stationary or non stationary? why (not)?
A: The correct answer is given in the second step.
Q: Comprehensively state the criteria and process of selecting appropriate models for time series…
A: Time series forecasting is used when making scientific forecasts based on historical time stamped…
Q: Questions 6 & 7: A model for the Consumer Price Index (CPI) for the period July 2005 (t = 0) to…
A: Answer: (6). To find the inflation rate in November 2005 (t=4) the following formula will be used:…
Q: If both variables being analyzed are nominal data, the best method to reveal any potential…
A: There are different methods that are used by the researchers and economists to analyze the…
Q: Define Nonstationarity? Explain the two most important types of nonstationarity in economic time…
A: Nonstationarity or nonstatistical data is data that is not fixed but changes over time i.e. mean and…
Q: Rather than changing by a constant amount each period as with the gradient series, the geometric…
A: Mathematical forms of economics are bagged by several series and their types and also a number of…
Q: Differentiate and explain the following terms: i. Time Series Data and Cross Sectional Data
A: The data for time-series will be required to study growth fluctuation in different time periods for…
Q: Suppose sales for the past 6 months have been 100, 106, 87, 102, 87, and 104 Using a smoothing…
A: Suppose sales for the past 6 months have been 100,106,87,102,87,and 104 Here smoothing coefficient…
Q: The "SBUX" worksheet in the data pack represents revenue (measured in billions of dollars) generated…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: What factor(s) determine the magnitude of the LM slope (steep or flat)?
A: The factor that determine the magnitude of the LM curve, i.e. whether it will be steep or flat…
Q: Name two coincident indicators used in forecasting
A: Coincident indicators help in understanding the current economic position prevailing in a particular…
Q: Which of the following is NOT TRUE about trend analysis? a) In trend analysis every item is…
A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…
Q: If you plot temperature on the y axis and time on the x axis, you have created a A. bar chart. B.…
A: The economics as a study is considered to be a very vast area of study. In economics, the basic idea…
Q: What is meant by the seasonal adjustment of a time series? Explain why government agencies expend a…
A: The seasonal adjustments refer to the adjustments made concerning the time series where generally…
Q: Describe A time-ordered sequence of observations taken at regular intervals.
A: A time series is a time-ordered sequence of observations taken at regular intervals over a period of…
Q: A local moving company has collected data on the number of moves they have been asked to perform…
A: The equation for the trend line of yearly sales is given: Ft = 16 + 60t
Q: Let grthemp denote the proportionate growth in employment, at the county level, from 1990 to 1995,…
A: Answer - Regression - Regression is a statistical method used to determine the strength and…
Q: Can the IS curve shift in (Y,i) coordinates? What coordinates is it drawn in?
A: The IS curve represents the goods market equilibrium. At all points on this curve, desired…
Q: Mr. John operates a medium size business that sells tires. He buys most of his tires from a company…
A: What is EOQ? Economic order quantity is the ideal quantity any company should order to minimize…
Q: Two coincident indicators used in forecasting
A: A coincident pointer is a metric that shows the present status of financial movement inside a…
Q: ANSWER 1-5 IF TRUE OR FALSE 1. As an initial attempt, we use multiple line chart to see trend and…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: The Global Machine Manufacturing Company, Q5. manufacturing Heavy Machines in the Sultanate of Oman.…
A: Disclaimer :- as you posted Multipart questions we are supposed to solve the first 3 questions only.…
Q: 3- Autocorrelation is most common among time series data. * O True O False
A: Autocorrelation is usually present in time series data. This statement is true.
Q: The quadrant on which IS and LM are plotted is known as IY space? true or false
A: IS line shows the goods market equilibrium and it is downward sloping curve which shows Inverse…
Q: In the trend model Tt = b0 + b1*Timet, suppose that b1 > 0. Is the series expected to grow or…
A: Trend Model is a linear model derived between the points of dependable and independent variables…
Q: LM BP IS Y.
A:
Q: Question 3 We run the following model: cigarette,+Bymale, + we find that the R2 is 0.12 and the SSR…
A: Question 1: cigarette=B0+B1price+e B0: When the price of the cigarette is zero, the number of…
Q: Explain in detail the autocorrelation consequences in assumption of the OLS estimators.
A: OLS estimators are linear elements of the upsides of Y (the reliant variable) which are linearly…
Q: If the base year is 2009, then the consumer price index is in 2011.
A: CPI basket consists of 4 hamburgers and 8 hot dogs. Value of basket in base year= 4 × $5 + 8 × $3…
Q: price index is: a) a measurement showing how the average price of a bundle of goods…
A: Price index is a standardized normal (commonly a weighted normal) of relative prices for a given…
Q: Which component of time series can be considered to be present due to the occurrence of business or…
A: A bunch of perceptions requested as for the progressive time frames is a time series. As such, the…
Q: Explain the term "Autocorrelation" in relation to Time Series data?
A: Autocorrelation is a kind of serial dependence. Autocorrelation can be understood at the level of…
Q: Exponential smoothing gives more weight to the _______________ observations and less to the…
A: Exponential smoothing is the process used to smooth the data for making forecasts and framing…
Q: Explain the OLS Estimator in Multiple Regression in detail?
A: OLS Estimation: It is the estimator that estimates the unknown values of the parameters like in the…
Q: Qualitative methods of forecasting include:a) sales force composite. b) jury of executive opinion.c)…
A: The methods of sales forecasting include qualitative and quantitative methods. Some of the…
Q: The deflation. is a statistic used to measure the pace of inflation or Multiple Choice O index of…
A: Inflation rate refers to rate which the average price level in an economy rise. If the inflation…
Q: the basic data source to track the number of unemployed comes from a calculation of applications for…
A: The basic data source to track the number of unemployed in the US economy is the Current Population…
Q: can not be a component for a time series plot. a. seasonality b cyclical c. trend Od. None of the…
A: Time series is the list of data that is for a period of time which is used for economic forecasting.…
Q: To study the determinants of growth across the countries in the world, researchers have used country…
A: (a) This is often called the problem of excluding a relevant variable or under-specifying the model.…
Q: Explain the purpose of trend line
A: Trendline can be defined as a recognizable line which indicates the best fit of a particular data or…
Q: Explain why it is important that time-series variables are ‘stationary’. Outline a method that can…
A: Time series analysis relies heavily on the concept of stationarity. For the time series process,…
Q: From the following data relating to the number of letters posted a port office find the seasonal…
A: In the mentioned question we have to calculate seasonal variations using the method of simple…
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- Microsoft's annual world wide revenue increased approximetly stedally from 28.4 billion in 2002 to 110.4 billion in 2018. Find the approximate rate of change.Calculate the percentage change of the variable in each of the following cases. Then calculate the percentage change if the movement is occurring in the opposite direction, with what was the final value now the initial value and vice versa. Now calculate a comparable percentage change using the average of the initial and ending values. Express all three changes in absolute value form without positive or negative signs and as whole numbers (i.e. 67%, not 66.6%). a. A fast-food restaurant, which originally sold hamburgers at a price of $5, increases their price to $6. The absolute value of this percentage change is %, and the absolute value of the percentage change calculated using the average of the two values is %, the absolute value of the percentage change in the opposite direction is %. b. The number of autos sold monthly at a car dealership drops from 400 to 300. The absolute value of this percentage change is %, the absolute value of the percentage change in the opposite direction…What are the correct relations between increasing and decreasing for all shown below?
- 5. Simulate the following AR(2) processes: Yt=1+0.3 Yt-1 +0.7 Yt-2+ɛtYt-1-0.3 Yt-1 -0.7 Yt-2+εt for øpt → N(0, 1). Comment on their differences: Contrast their time series and their autocorrelation functions. Comment on the covariance-stationary properties of both processes. 41%Why is base 10 logarithm (log) derived as a natural logarithm (1/x2)? Please confirm that derivate of logarithm of base 10 is in this case 1/[x2*log(10)] to modify your answer. Thank youCan the IS curve shift in (Y,i) coordinates? What coordinates is it drawn in?
- The outside temperature can be estimated based on how fast crickets chirp. At 104 chirps per minute, the temperature is 63 °F. At 176 chirps per minute, the temperature is 81 °F. Using this information, you can make a formula that relates chirp rate to temperature. Assume the relationship is linear, that is the points form a straight line when plotted on a graph. What is the temperature if you hear 128 chirps per minute? °F What is the temperature if you hear 72 chirps per minute? °FUse a software of your own choice to calculate the daily log prices (lp) and daily log returns (Ir) i. Examine the descriptive statistics of both lp and Ir. What do you conclude about the distributions of lp and Ir? Is lp normally distributed? Is Ir normally distributed? Obtain the correlograms, and examine the autocorrelations and partial autocorrelations for both lp and Ir. What do you conclude about the behaviour of lp and Ir? Are they stationary/non-stationary? ii. iii. Are your conclusions about stationary/non-stationary of lp and lr confirmed by appropriate unit root tests?Round off to 4 decimal places. The value for the slope parameter is?