ECON 5705 Chap 5 Exercises Brendan O&acirc;€™Neal

# ECON 5705 Chap 5 Exercises Brendan O&acirc;€™Neal -...

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Brendan O’Neal ECON 5705 Chapter 5 Exercises 1, 2, 3, 7 Exercises 1. a. S = k(YZ)/P S = 100(11,000 x 1200)/20,000 = 66,000 b. S = 100 (11,000 x 1200)/17,500 = 75,429 c. we would get time series data on s, y, z, p, and use regression to estimate k d. sales in t may have unknown variables because of unknowns before t. We first need to estimate Yt, Zt, and Pt before we can estimate St. 2. a. St + 1 = 100,000 (1 + .08) 1 = 108,000 St + 2 = 100,000 (1 +.08) 2 = 116,640 St + 3 = 100,000 (1+.08)3 = 125,971 b. St + 4/St = 100,000/60,000 = (1 + g) 4 = 1.667 g = 14% 3. a. Month X Unadjusted Adjustment Adj. Forecast Jan 03 24 1000 + 9(24) = 1216 5% 1216(1.05) =1277 Apr 03 27 1000+ 9(27) = 1243 -15% 1243(.85) = 1057 July 03

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Unformatted text preview: 30 1000 + 9(30) = 1270 4% 1270(1.04) = 1321 Nov 03 34 1000 + 9(34) = 1306-5% 1306 (.95) = 1241 Dec 03 35 1000 + 9 (35) = 1315 -25% 1315 (.75) = 986 b. Year Forecast Actual A/F % 2006 1045 1096 104.9% 2005 937 993 106.0% 2004 829 897 108.2% 2003 721 751 104.2% 2002 613 628 102.4% 2001 505 560 110.9% S of (Actual/Forecast) = 636.6% Avg = 106.1% Adj = + 6% 7. a. 100,000 = 665,195 (x) x = .150 according to the values in table 4, growth is about 20% b. 665,195 (1.2086) = 803,955 c. from 1990 to 2000 growth rate has been steady and down (1990 @ 30% to 2000 @12%) at about 2% per year. Growth from 2000 to 01 would be about 10%. d. 2001 = 665,195 (1.10) = 731,715...
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## This note was uploaded on 01/30/2011 for the course ECO 5705 taught by Professor Kest during the Spring '10 term at Hodges University.

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ECON 5705 Chap 5 Exercises Brendan O&acirc;€™Neal -...

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