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

An explanatory forecasting technique in which the analyst must select independent variables that help determine the dependent variable is called

$\mathrm { Q } = - 6,500 - 100 \mathrm { P } _ { \mathrm { A } } + 50 \mathrm {~PB} + .3 \mathrm { I } + .2 \mathrm {~A} ; \mathrm { R } ^ { 2 } = .12 , ( 2,500 ) ( 50 ) ( 30 ) ( .1 ) ( .08 )$ $\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 a researcher,which aspect of the results would be of greatest concern?

Based on annual data from 2000-2010,the Gadget Company estimates that sales are growing according to a linear trend: Q = 50,000 + 200t where t is time and t = 0 in 2000. a.Forecast sales for 2013. b.Do you see any problems with this forecasting method?

The forecasting technique,which predicts technological trends and is carried out by a sequential series of written questions and answers is

Which indicator shows how well a regression line fits through the scatter of data points?

The forecasting technique which involves the use of the least squares statistical method to examine trends,and takes into account seasonal and cyclical fluctuations,is known as

Which of the following is a Lagging Economic Indicator?

Which of the following is a test of the statistical significance of the entire regression equation?

The F-test is used to determine if

The fact that a person with a forceful and persuasive personality but not necessarily the greatest amount of knowledge and judgment can exercise a disproportionate amount of influence is a major drawback of

Use the equation Qd = 5,000 - 15P + 50A + 3Px - 4I,(2,117)(2.7)(15)(2)(3) where Qd = Quantity Demanded,P = Good Price,A = Advertising Expenditures,Px = Price of a Competitive Good,A = Advertising Expenditures,I = Average Monthly Income,and the Standard Errors of the Regression Coefficients are shown in Parentheses. Calculate the t-statistics for each variable and explain what inferences can be drawn from them.If R² of this equation is 0.25,what inference can be drawn from it?

The forecasting method that involves using an average of past observations to predict the future (if the forecaster feels that the future is a reflection of some average of past results)is the

A general rule of thumb is that if,after a period of increases,the leading indicator index sustains ________ consecutive declines,a recession (or at least a slowing of the economy)will follow.

A dummy variable is also called

The F-test is used in forecasting to

Which of the following is a Leading Economic Indicator?

Quantitative forecasting that projects past data without explaining the reasons for future trends is called

Which of the following is a leading economic indicator?

When would you use a one-tailed rather than a two-tailed t-test when checking significance levels?

When the more recent observations are more relevant to the estimate of the next period than previous observations,the naïve forecasting method to employ is