Fin 271
Econometrics & Time Series Analysis
Midterm Examination
Fall 2010
Compliance
I hereby affirm that:
I was fully informed by Professor Wirtz prior to the Midterm Examination that all work on this Examination was to be
fully my own, with no collabora
4 out of 4 points
Suppose we wish to use
the Bluebook value of an
automobile to predict the
value that it actually
sells for.
Automobile number 1
has a Bluebook value of
7429 and sold for 5,786.
Automobile number 2
has a Bluebook value of
16917 and sold
Finance 271
Financial Modeling &
Econometrics
Midterm
Student ID: G
Name:
Please be sure to type your name and Student ID in the specified area above.
Please place your answers to each question in the area reserved for that question. Please
use only Micr
Finance 271
Financial Modeling &
Econometrics
Midterm
Student ID: G
Name:
Please be sure to type your name and Student ID in the specified area above.
Please place your answers to each question in the area reserved for that question. Please
use only Micr
Question 1
1 out of 1 points
True or False:
Cook's D measures
an observation's
influence, not the
extent to which it
is an outlier.
Answer
Selected Answer:
Correct Answer:
True
True
Question 2
1 out of 1 points
In the class session
which addressed
serial
Suppose we wish to use the Bluebook value
of an automobile to predict the value that it
actually sells for.
Automobile number 1 has a Bluebook value
of 7429 and sold for 5801.
Automobile number 2 has a Bluebook value
of 16917 and sold for 19405.
Automobi
Solution to Case 19
Debt Versus Equity Financing
Look Before You Leverage
If Symonds Electronics Inc. were to raise all of the required capital by issuing debt,
what would the impact be on the firms shareholders?
The impact on shareholders can be anal
Group 7:
Members: Xu Jiang
Jiali Tang
Jie Zeng
Xiaohang Gao
Chaofan Lin Yan Ma
Where Do We Draw The Line
Questions:
1.Why do you think Paul prefers to use the WACC when analyzing product
acquisitions rather than some baseline rate or the rate on the cheap
Question 1
1 out of 1 points
Suppose we wish
to use the
Bluebook value of
an automobile to
predict the value
that it actually
sells for.
Automobile
number 1 has a
Bluebook value of
7429 and sold for
5466. Automobile
number 2 has a
Bluebook value of
16917
Question 1
4 out of 4 points
In regression
analysis, another
name for the
independent
variable is the
Answer
Selected Answer:
predictor
Correct Answer:
predictor
Question 2
0 out of 4 points
In a regression
equation, the letter
"X" is often
associated wi
Question 1
4 out of 4 points
Suppose we wish
to use a mutual
fund's Expense
Ratio to predict its
risk-adjusted
performance.
Fund A has an
Expense Ratio
Index of 44 and a
Performance
Index of 45.
Fund B has an
Expense Ratio
Index of 7 and a
Performance
In
Question 1
1 out of 1 points
Suppose we wish
to use a mutual
fund's Expense
Ratio to predict its
risk-adjusted
performance. We
have a sample of
funds:
Fund A has an
Expense Ratio
Index of 44 and a
Performance
Index of 36.
Fund B has an
Expense Ratio
Inde
1
2
3
4
5
6
Mean
sxx=
sxy=
syy=
b1= slop
b0= interceptt
yhat
Residual
Expected Value for the car 15000 value
sse
MSE
Root MSE
r^2
Standard Deviation
Standard Error of the Slope
excpected residual = 0
x
44
7
40
6
32
20
149
24.8333333333
xy
y
43
75
8
91
23
FIN 6271
Assignment 5 Solutions
Student: _
Part I
(A) The weekly market share plot and sample ACF of Crest company is shown
below. As the general upward trend implies, the time series is not
stationary (with none constant mean). Also the sample ACF showin
FIN 6271
Assignment 4 Solutions
Student: _
Part A
(A) We obtained the results from SAS by estimating the model
CEAR_t = beta_0 + beta_1 * UNEMPt+ beta_2 * UNEMPL_t + beta_3 * INFL +
epsilon_t,
is
Parameter Estimates
Variable
Intercept
UNEMPL
INFL
PARTY
DF
FIN 6271
Assignment 3 Solutions
Student: _
Part A
(A) Based on the plotted U.S seasonally adjusted quarterly GNP
growth below, it indicates the series is most likely
stationary; this is because (1) the overall mean is about
constant overtime, (2) the vari
X indep Y dep ( Model Y=X )
Confidence interval Approach: (If . Values predict values at all in the population)
H0: Slope=0 , HA: slope 0
If p-value is less than .05 we reject the null and accept alternative (conclude with 95% that . is
linearly related t
Quiz 1:
the standard deviation of the dependent variable
data S;
input y x;
repx=1/X;
cards;
7429 7417
16917 19405
20946 18562
22956 14915
26219 25078
;
PROC reg data=s;
model y=x/clb;
run;
the residual of the first observation / the expected sale value
d
Question 1
4 out of 4 points
Suppose we wish
to determine
whether, in the
population, Y (the
dependent
variable) is
negatively related
to X (the
independent
variable). We
draw a random
sample.
One observation
has an X value of
175 and a Y value
of -185.
Question 1
4 out of 4 points
Suppose we wish
to determine the
extent to which Y
(the dependent
variable) is
uniquely
predictable from
X1 in a multiple
regression that
includes X1 and
X2 as independent
variables. We
draw a random
sample.
One observation
h
Question 1
4 out of 4 points
Suppose we wish
to model food
expenditure as a
function of the
relative change in
total expenditure
in India.
One family had a
total expenditure
of 382 rupees and
a food expenditure
of 235 rupees.
Another family
had a total
e