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 thi
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.
Auto
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
stationar
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 th
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 th
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
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
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 firm
Group 7:
Members: Xu Jiang
Jiali Tang
Jie Zeng
Xiaohang Gao
Chaofan Lin Yan Ma
We Are Not All Alike
Questions:
1.Using the data given in Table 2, determine the relative variability of each
divisions s
Solution to Case 11
Replacement Project Analysis
If the Coat Fits Wear It
Your supervisor, Vic Gonzales, has asked you to prepare a capital budgeting
report indicating whether ISGC should replace t
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
7. Develop the pro forma financial statements for the company under the two
credit policy alternatives, ie. 2/10, net 60; and 2/10 net 30 using the
assumptions given. What would be the impact on the f
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
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 independen
Question 1
4 out of 4 points
Suppose we wish
to estimate the
slope of the
relationship
between Y
(dependent
variable) and two
independent
variables (X1 and
X2) in a multiple
regression model
where we
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 residu
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 alte
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) th
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
Para