22. TABLE 15-2 A certain type of rare gem serves as a status symbol for many ofi
ID: 2955433 • Letter: 2
Question
22.TABLE 15-2
A certain type of rare gem serves as a status symbol for many ofits owners. In theory, for low prices, the demand decreases as theprice of the gem increases. However, experts hypothesize that whenthe gem is valued at very high prices, the demand increases withprice due to the status owners believe they will gain by obtainingthe gem. Thus, the model proposed to best explain the demand forthe gem by its price is the quadratic model:
Y = 0 + 1X + 2X2 +
where Y = demand (in thousands) and X = retail price per carat.
This model was fit to data collected for a sample of 12 rare gemsof this type. A portion of the computer analysis obtained fromMicrosoft Excel is shown below:
SUMMARY OUTPUT
ANOVA
Referring to Table 15-2, what is the value of the test statisticfor testing whether there is an upward curvature in the responsecurve relating the demand (Y) and the price (X)?
A)-5.14
B)373
C)0.95
D)none of the above
23.After estimating a trend model for annualtime-series data, you obtain the following residual plot againsttime:
The problem with your model is that
A)the irregular component has not been accounted for.
B)the trend component has not been accounted for.
C)the cyclical component has not been accounted for.
D)the seasonal component has not been accounted for
24. TABLE 16-4
Given below are Excel outputs for various estimated autoregressivemodels for Coca-Cola's real operating revenues (in billions ofdollars) from 1975 to 1998. From the data, we also know that thereal operating revenues for 1996, 1997, and 1998 are 11.7909,11.7757 and 11.5537, respectively.
AR(1) Model:
AR(2)Model:
AR(3) Model:
Referring to Table 16-4, if one decides to use AR(3), what will thepredicted real operating revenue for Coca-Cola be in 2001?
A)$11.68 billion
B)$11.59 billion
C)$12.47 billion
D)$11.84 billion
25. TABLE 16-3
The following table contains the number of complaints received in adepartment store for the first 6 months of last year.
Referring to Table 16-3, suppose the last two smoothed values are81 and 96. (Note: they are not.) What would you forecast as thevalue of the time series for September?
A)96
B)81
C)91
D)86
26. A tabular presentation that shows the outcome for eachdecision alternative under the various states of nature iscalled:
A)a payback period matrix.
B)a decision tree.
C)a payoff table.
D)a decision matrix.
Explanation / Answer
22.C) 0.95 23.A) the irregular component has not been accountedfor. 24.A) $11.68 billion 25.D) 86 26.D) a decision matrix.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.