Exam 7: Demand Estimation and Forecasting

The manufacturer of Beanie Baby dolls used quarterly price data for 2005I - 2013IV t = 1,...,36)and the regression equation to forecast doll prices in the year 2014. is the quarterly price of dolls,and and are dummy variables for quarters I,II,and III,respectively. At the 2 percent level of statistical significance,is there a statistically significant trend in the price of dolls?

A forecaster used the regression equation and quarterly sales data for 1996I-2013IV t = 1,...,64)for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and and are dummy variables for quarters I,II,and III. What is the estimated intercept of the trend line in the fourth quarter?

A forecaster used the regression equation and quarterly sales data for 1996I-2013IV t = 1,...,64)for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and and are dummy variables for quarters I,II,and III. Using the estimation results given above,the predicted level of sales in 2014IV is _______ units.

Demand equations derived from actual market data are

A forecaster used the regression equation and quarterly sales data for 1996I-2013IV t = 1,...,64)for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and and are dummy variables for quarters I,II,and III. In any given year,quarterly sales tend to vary as follows:

The manufacturer of Beanie Baby dolls used quarterly price data for 2005I - 2013IV t = 1,...,36)and the regression equation to forecast doll prices in the year 2014. is the quarterly price of dolls,and and are dummy variables for quarters I,II,and III,respectively. In any given year price tends to vary from quarter to quarter as follows:

The manufacturer of Beanie Baby dolls used quarterly price data for 2005I - 2013IV t = 1,...,36)and the regression equation to forecast doll prices in the year 2014. is the quarterly price of dolls,and and are dummy variables for quarters I,II,and III,respectively. Using the estimated time-series regression,predicted price in the 1st quarter of 2014 is

Build-Right Concrete Products produces specialty cement used in construction of highways.Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form: where Q = yards of cement demanded monthly,P = the price of Build-Right's cement per yard,M = state tax revenues per capita,and = the price of asphalt per yard.The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation.The estimation results are presented below: Given the above,if the price of asphalt )decreases 20%,the estimated quantity of cement demanded will:

The following linear demand specification is estimated for Conlan Enterprises,a price-setting firm: where Q is the quantity demanded of the product Conlan Enterprises sells,P is the price of that product,M is income,and is the price of a related product.The results of the estimation are presented below: For the next 2 questions suppose income remains at $10,000 but the price of the related good increases to $60 and Conlan decides to raise the price of its product to $50.At the prices and income given above,Conlan can expect to sell _________units.

The estimated demand for a good X is ,where = units of the good,P = price of the good,M = income,and = price of related good Z.All parameter estimates are statistically significant.Which of the following statements is correct?

estimated demand for a good is where Q is the quantity demanded of the good,P is the price of the good,M is income,and is the price of related good R.The good is

a.complements since the coefficient on M is positive. b.substitutes since the coefficient on M is positive. c.complements since the coefficient on is positive. d.substitutes since the coefficient on is positive. -estimated demand for a good is where Q is the quantity demanded of the good,P is the price of the good,M is income,and is the price of related good R.If income decreases by $1,000,all else constant,quantity demanded will ________ by _________ units.

Time-series models

The manufacturer of Beanie Baby dolls used quarterly price data for 2005I - 2013IV t = 1,...,36)and the regression equation to forecast doll prices in the year 2014. is the quarterly price of dolls,and and are dummy variables for quarters I,II,and III,respectively. Using the estimated time-series regression,predicted price in the 2nd quarter of 2014 is

The manufacturer of Beanie Baby dolls used quarterly price data for 2005I - 2013IV t = 1,...,36)and the regression equation to forecast doll prices in the year 2014. is the quarterly price of dolls,and and are dummy variables for quarters I,II,and III,respectively. What is the estimated intercept of the trend line in the 1st quarter?

estimated demand for a good is where Q is the quantity demanded of the good,P is the price of the good,M is income,and is the price of related good R.The coefficient on P

A consulting firm estimates the following quarterly sales forecasting model: The equation is estimated using quarterly data from 2005I-2015III t = 1,...,43).The variable D is a dummy variable for the second quarter where: D = 1 in the second quarter,and 0 otherwise. The results of the estimation are: Using the estimated trend line above,what is the predicted level of sales in 2015IV ?

The manufacturer of Beanie Baby dolls used quarterly price data for 2005I - 2013IV t = 1,...,36)and the regression equation to forecast doll prices in the year 2014. is the quarterly price of dolls,and and are dummy variables for quarters I,II,and III,respectively. At the 2 percent level of statistical significance,the results indicate that price in the ________ quarter is significantly lower than in any other quarter.

The following linear demand specification is estimated for Conlan Enterprises,a price-setting firm: where Q is the quantity demanded of the product Conlan Enterprises sells,P is the price of that product,M is income,and is the price of a related product.The results of the estimation are presented below: Assume that the income is $10,000,the price of the related good is $40,and Conlan chooses to set the price of this product at $30.At the prices and income given above,Conlan can expect to sell _________units.

A forecaster used the regression equation and quarterly sales data for 1996I-2013IV t = 1,...,64)for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and and are dummy variables for quarters I,II,and III. What is the estimated intercept of the trend line in the second quarter?