Question 1

The Trend Projection approach to forecasting is represented by

Accepted Answer

A) time-series regressions. 
B) exponential smoothing. 
C) opinion polls. 
D) All of the above 
A) time-series regressions. 
B) exponential smoothing. 
C) opinion polls. 
D) All of the above D

Question 2

Which of the following indicators will always improve when more variables are added to a regression equation?

Accepted Answer

A) the magnitudes of the coefficients 
B) the t-test 
C) R2 
D) the standard errors of the coefficients 
A) the magnitudes of the coefficients 
B) the t-test 
C) R2 
D) the standard errors of the coefficients C

Question 3

Regression analysis can best be described as

Accepted Answer

A) a statistical technique for estimating the best relationship between one variable and a set of other selected variables. 
B) a statistical technique for determining the true values of variables. 
C) a statistical technique for creating functional relationships among variables. 
D) None of the above 
A) a statistical technique for estimating the best relationship between one variable and a set of other selected variables. 
B) a statistical technique for determining the true values of variables. 
C) a statistical technique for creating functional relationships among variables. 
D) None of the above A

Question 4

$$\mathrm { Q } = - 6,500 - 100 \mathrm { P } _ { \mathrm { A } } + 50 \mathrm {~PB} + .3 \mathrm { I } + .2 \mathrm {~A} ; \mathrm { R } ^ { 2 } = .12 , ( 2,500 ) ( 50 ) ( 30 ) ( .1 ) ( .08 )$$
$\text {where $Q$ is the quantity demanded of good $A ; P A = \$ 10$, price of good $A ; P _ { B } = \$ 8$, price of good }$
$\text {$B ; I = \$ 12,000$, per capita income; and $A = \$ 20,000$, monthly advertising expenditures.}$
-As the manager of good A,which of the following would be of greatest concern (based on the regression results above)?

Accepted Answer

A) None of the factors below would be of concern. 
B) an impending recession 
C) pressure on you by your salespersons to lower the price so that they can boost their sales 
D) a price reduction by the makers of good B 
A) None of the factors below would be of concern. 
B) an impending recession 
C) pressure on you by your salespersons to lower the price so that they can boost their sales 
D) a price reduction by the makers of good B

Question 5

Which of the following is a test of the statistical significance of a particular regression coefficient?

Accepted Answer

A) t-test 
B) R2 
C) F-test 
D) Durbin-Watson test 
A) t-test 
B) R2 
C) F-test 
D) Durbin-Watson test

Question 6

Which of the following refers to a relatively high correlation among the independent variables of a regression equation?

Accepted Answer

A) autocorrelation 
B) the identification problem 
C) statistically insignificant regression coefficients 
D) multicollinearity 
A) autocorrelation 
B) the identification problem 
C) statistically insignificant regression coefficients 
D) multicollinearity

Question 7

Which of the following is not a drawback of forecasting using the compound growth rate method?

Accepted Answer

A) only considers first and last observations 
B) considers only equal absolute changes 
C) disregards fluctuations between the original and terminal observations 
D) does not consider any trends in the data 
A) only considers first and last observations 
B) considers only equal absolute changes 
C) disregards fluctuations between the original and terminal observations 
D) does not consider any trends in the data

Question 8

What are the prerequisites of a good forecast?

Accepted Answer

A forecast must be consistent with all a

Question 9

For the regression equation Q = 100 - 10X + 0.25X2,which of the following statements is true?

Accepted Answer

A) X2 is the more important variable because it is positive. 
B) When X decreases by one unit,Q decreases by 10 units. 
C) When X increases by 10 units,Q decreases by 1 unit. 
D) The change in Q associated with a one unit increase in X depends on the initial level of X. 
A) X2 is the more important variable because it is positive. 
B) When X decreases by one unit,Q decreases by 10 units. 
C) When X increases by 10 units,Q decreases by 1 unit. 
D) The change in Q associated with a one unit increase in X depends on the initial level of X.

Question 10

Why is the identification problem more likely with time-series estimates of demand?

Accepted Answer

Identification problems occur when it is

Question 11

Which of the following is most likely to indicate a statistically significant regression coefficient?

Accepted Answer

A) |t| > R2 
B) R2 > .90 
C) |t| > 2 
D) |t| > 4 
A) |t| > R2 
B) R2 > .90 
C) |t| > 2 
D) |t| > 4

Question 12

Charting observations on a semi-logarithmic graph will help the analyst to ascertain whether

Accepted Answer

A) absolute changes from period to period are constant. 
B) whether percentage changes from period to period are constant. 
C) whether percentage changes from period to period are declining. 
D) Both B and C 
A) absolute changes from period to period are constant. 
B) whether percentage changes from period to period are constant. 
C) whether percentage changes from period to period are declining. 
D) Both B and C

Question 13

What are the four different characteristics that data exhibit when undertaking time-series forecasts?

Accepted Answer

Trend; Cyclical Fluc

Question 14

The use of a dummy variable in regression analysis indicates

Accepted Answer

A) that a researcher does not really know what to include in the equation. 
B) that a categorical variable is expected to have an impact on a dependent variable. 
C) that insufficient data is available for the analysis. 
D) the use of hypothetical data. 
A) that a researcher does not really know what to include in the equation. 
B) that a categorical variable is expected to have an impact on a dependent variable. 
C) that insufficient data is available for the analysis. 
D) the use of hypothetical data.

Question 15

The firm is considering changing its price to $900.Predict the quantity demanded at that price,all other things equal and provide a 95% confidence interval on your estimate.(In doing this,explain the value of t-critical you will use in developing your 95% confidence interval.)

Accepted Answer

At a price of $900,the point estimate of

Question 16

Among the advantages of the ________ technique of forecasting are ease of calculation,relatively little requirement for analytical skills,and the ability to provide the analyst with information regarding the statistical significance of results and the size of statistical errors.

Accepted Answer

A) least-squares trend analysis 
B) compound growth rate 
C) visual trend-fitting 
D) expert opinion 
A) least-squares trend analysis 
B) compound growth rate 
C) visual trend-fitting 
D) expert opinion

Question 17

In the estimation of demand,the "identification problem" refers to

Accepted Answer

A) the problem of selecting the proper level of significance. 
B) the problem of deciding whether to use time series or cross-sectional data. 
C) the problem of separating out the effects of price on the quantity demanded when supply cannot be held constant. 
D) the problem of having insufficient variation in prices. 
A) the problem of selecting the proper level of significance. 
B) the problem of deciding whether to use time series or cross-sectional data. 
C) the problem of separating out the effects of price on the quantity demanded when supply cannot be held constant. 
D) the problem of having insufficient variation in prices.

Question 18

Among the advantages of the least-squares trend analysis techniques is

Accepted Answer

A) the ease of calculation. 
B) relatively little analytical skill required. 
C) its ability to provide information regarding the statistical significance of the results. 
D) All of the above 
A) the ease of calculation. 
B) relatively little analytical skill required. 
C) its ability to provide information regarding the statistical significance of the results. 
D) All of the above

Question 19

Which of the following is a measure of the explanatory power of the regression model?

Accepted Answer

A) t-test 
B) R2 
C) F-test 
D) Durbin-Watson test 
A) t-test 
B) R2 
C) F-test 
D) Durbin-Watson test

Question 20

The problem of autocorrelation refers to

Accepted Answer

A) independent variables in a regression equation whose values are closely related to each other. 
B) insufficient data to estimate regression coefficient values. 
C) regression coefficient values which are not significantly different from zero. 
D) regression equation variables which exhibit a similar pattern in their values over a number of time periods. 
A) independent variables in a regression equation whose values are closely related to each other. 
B) insufficient data to estimate regression coefficient values. 
C) regression coefficient values which are not significantly different from zero. 
D) regression equation variables which exhibit a similar pattern in their values over a number of time periods.

The Trend Projection approach to forecasting is represented by

Which of the following indicators will always improve when more variables are added to a regression equation?

Regression analysis can best be described as

Which of the following is a test of the statistical significance of a particular regression coefficient?

Which of the following refers to a relatively high correlation among the independent variables of a regression equation?

Which of the following is not a drawback of forecasting using the compound growth rate method?

What are the prerequisites of a good forecast?

For the regression equation Q = 100 - 10X + 0.25X²,which of the following statements is true?

Why is the identification problem more likely with time-series estimates of demand?

Which of the following is most likely to indicate a statistically significant regression coefficient?

Charting observations on a semi-logarithmic graph will help the analyst to ascertain whether

What are the four different characteristics that data exhibit when undertaking time-series forecasts?

The use of a dummy variable in regression analysis indicates

The firm is considering changing its price to $900.Predict the quantity demanded at that price,all other things equal and provide a 95% confidence interval on your estimate.(In doing this,explain the value of t-critical you will use in developing your 95% confidence interval.)

Among the advantages of the ________ technique of forecasting are ease of calculation,relatively little requirement for analytical skills,and the ability to provide the analyst with information regarding the statistical significance of results and the size of statistical errors.

In the estimation of demand,the "identification problem" refers to

Among the advantages of the least-squares trend analysis techniques is

Which of the following is a measure of the explanatory power of the regression model?

The problem of autocorrelation refers to

Introduction

The Firm and Its Goals

Supply and Demand

Demand Elasticity

The Theory and Estimation of Production Appendices 6A,6B,and 6C

The Theory and Estimation of Cost Appendices 7A,7B,and 7C

Pricing and Output Decisions: Perfect Competition and Monopoly Appendices 8A and 8B

Pricing and Output Decisions: Monopolistic Competition and Oligopoly

Special Pricing Practices

Game Theory and Asymmetric Information

Capital Budgeting and Risk

The Multinational Corporation in a Global Setting

Government and Industry: Challenges and Opportunities for Todays Manager

The Global Soft Drink Industry

Filters

Exam 5: Demand Estimation and Forecasting Appendices 5A and 5B

The Trend Projection approach to forecasting is represented by

Which of the following indicators will always improve when more variables are added to a regression equation?

Regression analysis can best be described as

Which of the following is a test of the statistical significance of a particular regression coefficient?

Which of the following refers to a relatively high correlation among the independent variables of a regression equation?

Which of the following is not a drawback of forecasting using the compound growth rate method?

What are the prerequisites of a good forecast?

For the regression equation Q = 100 - 10X + 0.25X2,which of the following statements is true?

Why is the identification problem more likely with time-series estimates of demand?

Which of the following is most likely to indicate a statistically significant regression coefficient?

Charting observations on a semi-logarithmic graph will help the analyst to ascertain whether

What are the four different characteristics that data exhibit when undertaking time-series forecasts?

The use of a dummy variable in regression analysis indicates

The firm is considering changing its price to $900.Predict the quantity demanded at that price,all other things equal and provide a 95% confidence interval on your estimate.(In doing this,explain the value of t-critical you will use in developing your 95% confidence interval.)

Among the advantages of the ________ technique of forecasting are ease of calculation,relatively little requirement for analytical skills,and the ability to provide the analyst with information regarding the statistical significance of results and the size of statistical errors.

In the estimation of demand,the "identification problem" refers to

Among the advantages of the least-squares trend analysis techniques is

Which of the following is a measure of the explanatory power of the regression model?

The problem of autocorrelation refers to

Introduction

The Firm and Its Goals

Supply and Demand

Demand Elasticity

The Theory and Estimation of Production Appendices 6A,6B,and 6C

The Theory and Estimation of Cost Appendices 7A,7B,and 7C

Pricing and Output Decisions: Perfect Competition and Monopoly Appendices 8A and 8B

Pricing and Output Decisions: Monopolistic Competition and Oligopoly

Special Pricing Practices

Game Theory and Asymmetric Information

Capital Budgeting and Risk

The Multinational Corporation in a Global Setting

Government and Industry: Challenges and Opportunities for Todays Manager

The Global Soft Drink Industry

Filters

For the regression equation Q = 100 - 10X + 0.25X²,which of the following statements is true?