Applied Econometrics BE5103 Tutorial 1 Q1 a) In the simple OLS regression estimation it is not possible that all actual independent Yi values lie above the estimated regression line. This is because OLS minimizes SUM ê2 , the residual , ê, is the difference between the actual Yi and the predicted Yi and has zero mean. In other words, OLS calculates the slope coefficient so that the difference between the predicted Yi and actual Yi is minimized. The OLS estimates of the βs: Are unbiased – the
Words: 1531 - Pages: 7
Assignment 1: Making Decisions Based on Demand and Forecasting Managerial Economics and Globalization, ECO550 Making Decisions Based on Demand and Forecasting A market demand analysis is used to help understand how much consumer demand there is for a given product or service. This type of analysis will help determine if a business can successfully enter a market and generate enough revenue and profit to maintain the business. One must identify the market and the growth
Words: 1156 - Pages: 5
($30,000)? Use the regression: 14 - 1*4 + 30*0.4 + 0.2*30 = 28 So the sales would be $28000, since the regression gives the value in thousands b. Compute the value of r^2. ssr/sst = 3050/5250 = 0.58095 c. Compute the multiple standard error of estimate. sqrt(mse) = sqrt(84.62) =
Words: 338 - Pages: 2
“best” method. “The forecast error is the difference between the actual value and the forecast value for the corresponding period. where E is the forecast error at period t, Y is the actual value at period t, and F is the forecast for period t. Measures of aggregate error: Mean absolute error (MAE) Mean Absolute Percentage Error (MAPE) Mean Absolute Deviation (MAD) Percent Mean Absolute Deviation (PMAD) Mean squared error (MSE) Root Mean squared error (RMSE) Forecast skill (SS)
Words: 352 - Pages: 2
between the error term and the residual.) k. Draw this theoretical equation on the graph l. Using Excel or the sheet attached, calculate the error term (ε ) and mark them on the graph m. Using SPSS, run a regression and obtain estimated coefficients, n. Draw this estimated regression equation on the graph o. Using Excel or the sheet attached, calculate the residual (e ) and mark them on the graph p. Explain the differences between the error term and
Words: 332 - Pages: 2
SIMPLE LINEAR REGRESSION EXAMPLE Butler’s Trucking Company is an independent trucking Company in southern California. A major portion of Butler’s business involves deliveries throughout its local area. To develop better work schedules, the managers want to estimate the total daily travel time for their drivers. Initially the managers believed that the total daily travel time would be closely related to the number of miles traveled in making the daily deliveries. A simple random sample of
Words: 296 - Pages: 2
1. (a) How does correlation analysis differ from regression analysis? Correlation analysis identifies the relationship between independent and dependent variables while regression analysis uses independent variables to predict dependent variable by means of predictive model. (b) What does a correlation coefficient reveal? Correlation coefficient reveals the degree of association between independent and dependent variables. The closer to the one the value is the more strong relationship
Words: 1419 - Pages: 6
Statistical Analysis in the Car Market Course Title: Applied Managerial Statistics Course Number: GM 533 Instructor Name: Susan Orr Student Name: Braulio E. Assis (713-382-8789) Home Address: 3833 Cummins St Apt.1328, Houston, TX 77027 Email Address: edmur_assis2005@hotmail.com Title of the Work: “Statistical Analysis in the Car Market” Date: Aug 19, 2011 Introduction Business managers and owners in the car industry need information on which they could anchor their decision to maximize
Words: 2902 - Pages: 12
qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuio
Words: 304 - Pages: 2
result of floating-point division operations would be incorrect, an error that can quickly compound in floating-point operations to much larger errors in subsequent calculations.” (Engineer, 2008) There was a sequence of numbers a user could enter in the OS calculator that showed the error. This rounding error didn’t occur every time, just once every “27,000 years,” or so they thought. In reality, for most typical users, this rounding error would be noticed, on average, every 24 days. After the release
Words: 469 - Pages: 2
