S. Klepper, Economics 73-100, Fall 2011
Solution to Quiz 5
If the price of imported textiles rises and imported textiles are imperfect substitutes for U.S.
textiles, then the demand for U.S. textiles must rise at every price, causing the market demand
cur
Outline
Outline
1
Introduction
2
Fitting Trends in Time
3
Stationarity and Random Walk Models
4
Inference using Random Walk Models
5
Filtering to Achieve Stationarity
Frees (Regression Modeling)
Modeling Trends
1 / 25
Introduction
Basic Longitudinal Data
Outline
Outline
1
Autocorrelations
2
Autoregressive Models of Order One
3
Estimation and Diagnostic Checking
4
Smoothing and Prediction
5
Box-Jenkins Modeling and Forecasting
Frees (Regression Modeling)
Autocorrelations and Autoregressive Models
1 / 18
Au
Outline
Outline
1
What the Modeling Procedure Tells Us
2
The Importance of Variable Selection
3
The Importance of Data Collection
4
Missing Data Models
5
Application: Risk Managers Cost Effectiveness
Frees (Regression Modeling)
Regression - Interpreting R
Outline
Outline
1
The Role of Binary Variables
2
Statistical Inference for Several Coefcients
3
One Factor ANOVA Model
4
Combining Categorical and Continuous Explanatory Variables
Frees (Regression Modeling)
Multiple Linear Regression - II
1 / 40
The Role
MAS766
REVIEW
Foundations
Identifying and Summarizing Data
Distributions of Populations
Drawing an Individual Entity At Random (Probability)
Samples versus Populations and the Logic of Statistics
Random Sampling
Interval Estimation
What if? - The Role of
Outline
Outline
1
What is Regression Analysis?
2
Fitting Data to a Normal Distribution
3
Power Transforms
4
Sampling and the Role of Normality
5
Regression and Sampling Designs
Frees (Regression Modeling)
Regression and the Normal Distribution
1 / 20
What
Outline
Outline
1
Correlations and Least Squares
2
Basic Linear Regression Model
3
Is the Model Useful?: Some Basic Summary Measures
4
Properties of Regression Coefcient Estimators
5
Statistical Inference
6
Building a Better Model: Residual Analysis
7
App
Outline
Outline
1
Method of Least Squares
2
Linear Regression Model and Properties of Estimators
3
Estimation and Goodness of Fit
4
Statistical Inference for a Single Coefficient
5
Some Special Explanatory Variables
Frees (Regression Modeling)
Multiple Li
10/29/2013
9.1 Smoothing with Moving Averages
Smoothing is a process to remove noise (error)
MAS 766
Moving average is simple to compute and interpret
Averages reduce variance smooth
The running average length determines the amount of smoothing
Regres
11/10/2013
10.1 What are Longitudinal and Panel
Data?
Longitudinal data: Cross-section of subjects observed
repeatedly over time
MAS 766
Like regression data, except observations are responses over time
Panel data: A group of subjects (a panel) observe
S. Klepper, Economics 73-100, Fall 2011
Solution to Quiz 6
The increase in the tax will have no effect on the market demand curve, but it will increase the
marginal, average variable, and average total cost by $2,000 at every level of
output. Consequently
S. Klepper, Economics 73-100, Fall 2011
Solution to Quiz 7
If total variable costs increase by 10% at every level of output then the marginal cost curve of
hospitals must increase by 10% at every level of output. The cost increase has no direct effect
on
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 1
If each unit of food requires one unit of labor and the country has 500 units of labor, then it can
produce a maximum of 500 units of food. Regarding shelter, the first 200 units of shelter r
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 2
Following the hint, the 1990 budget line and an arbitrary point to represent the combination of
food and clothing chosen in 1990 are denoted in the figure below. Since Social Security
recipie
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 3
If the theatre company lowered its price, the quantity demanded would have risen, contributing
to more people wanting to attend the theatre. However, if the theatre company was selling out at
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 4
If wages rise by 10% and labor is the only variable cost of production, then total variable costs
must rise by 10% at every level of output. This in turn implies that marginal and average
var
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 5
If the government builds one million new homes, it will have no effect on the market demand
curve. It will also not affect the marginal cost curve of private producers of new homes, and
there
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 6
The price of new homes in the long run is determined by the long-run average cost of producing
new homes. Variations in the demand for new homes can contribute to short-run but not longrun ch
S. Klepper, Economics 73-100, Fall 2011
Solution to Mini-test 7
Since the tax is imposed on the monopolist, it has no impact on demanders and hence it has no
impact on the demand curve for the monopolists product. Therefore, it has no impact on the
margin