3300 Econometric HW obs RWAGES PRODUCT 1959 59.87100 48.02600 1960 61.31800 48.86500 1961 63.05400 50.56700 1962...

3300 Econometric HW

obs	RWAGES	PRODUCT
1959	59.87100	48.02600
1960	61.31800	48.86500
1961	63.05400	50.56700
1962	65.19200	52.88200
1963	66.63300	54.95000
1964	68.25700	56.80800
1965	69.67600	58.81700
1966	72.30000	61.20400
1967	74.12100	62.54200
1968	76.89500	64.67700
1969	78.00800	64.99300
1970	79.45200	66.28500
1971	80.88600	69.01500
1972	83.32800	71.24300
1973	85.06200	73.41000
1974	83.98800	72.25700
1975	84.84300	74.79200
1976	87.14800	77.14500
1977	88.33500	78.45500
1978	89.73600	79.32000
1979	89.86300	79.30500
1980	89.59200	79.15100
1981	89.64500	80.77800
1982	90.63700	80.14800
1983	90.59100	83.00100
1984	90.71200	85.21400
1985	91.91000	87.13100
1986	94.86900	89.67300
1987	95.20700	90.13300
1988	96.52700	91.50600
1989	95.00500	92.40800
1990	96.21900	94.38500
1991	97.46500	95.90300
1992	100.00000	100.00000
1993	99.71200	100.38600
1994	99.02400	101.34900
1995	98.69000	101.49500
1996	99.47800	104.49200
1997	100.51200	106.47800
1998	105.17300	109.47400
1999	108.04400	112.82800
2000	111.99200	116.11700
2001	113.53600	119.08200
2002	115.69400	123.94800
2003	117.70900	128.70500
2004	118.94900	132.39000
2005	119.69200	135.02100
2006	120.44700	136.40000

Problem 2.

Use the data in the “Autocorrelation” tab to test

For Autocorrelation using the Durbin Watson Test
Graph the Residuals and determine whether they are distributed normally or whether they are biased

Expert Solution

We are going to use the Durbin Watson Test for testing the autocorrelation. I am using the Stata Software for applying the Durbin Watson test.

You don't have mentioned which of the variable is dependent variable. I am providing the results where once "product" is taken as dependent variable and another time "wages" is taken as dependent variable. Irrespective of the dependent variable, the DW test statistic would be the same.

The output is given in the picture below:

Here you can see that Durbin Watson statistic is 0.1463206.

Graphs: The graph of the residuals is given below.

I am attaching two different plots.

1. k-density plot

2. p-p plot

Along with that I ma going to apply the Shapiro -wilk Test to make sure whether the residuals are normally distributed or not.

Where H0 is r is normally distributed.

Here, p-value is 0.04159. Thus we reject H0. We found that residuals are not normally distributed.

milcah answered 11 months ago

Year Commodities% Services% 1960 0.9 3.4 1961 0.6 1.7 1962 0.9 2.0 1963 0.9 2.0...

Year Commodities% Services% 1960 0.9 3.4 1961 0.6 1.7 1962 0.9 2.0 1963 0.9 2.0 1964 1.2 2.0 1965 1.1 2.3 1966 2.6 3.8 1967 1.9 4.3 1968 3.5 5.2 1969 4.7 6.9 1970 4.5 8.0 1971 3.6 5.7 1972 3.0 3.8 1973 7.4 4.4 1974 11.9 9.2 1975 8.8 9.6 1976 4.3 8.3 1977 5.8 7.7 1978 7.2 8.6 1979 11.3 11.0 1980 12.3 15.4 1981 8.4 13.1 1982 4.1 9.0 1983 2.9 3.5 1984 3.4 5.2 1985...

Table 9.2 Average Returns for Bonds Bonds 1950 to 1959 Average 0.0 % 1960 to 1969...

Table 9.2 Average Returns for Bonds Bonds 1950 to 1959 Average 0.0 % 1960 to 1969 Average 1.4 1970 to 1979 Average 5.3 1980 to 1989 Average 13.1 1990 to 1999 Average 9.9 2000 to 2009 Average 8.8 Table 9.4 Annual Standard Deviation for Bonds Bonds 1950 to 1959 4.3 % 1960 to 1969 6.2 1970 to 1979 6.6 1980 to 1989 15.5 1990 to 1999 12.7 2000 to 2009 10.7 Calculate the coefficient of variation of the risk-return relationship...

3300 Econometics HW Set 1 DATE Cons. Disp.Icome 2015-01-01 $ 11,788.36 $ 13,226.57 2015-04-01 $ 11,887.54...

3300 Econometics HW Set 1 DATE Cons. Disp.Icome 2015-01-01 $ 11,788.36 $ 13,226.57 2015-04-01 $ 11,887.54 $ 13,327.81 2015-07-01 $ 11,971.95 $ 13,440.36 2015-10-01 $ 12,039.65 $ 13,471.39 2016-01-01 $ 12,111.78 $ 13,562.27 2016-04-01 $ 12,214.10 $ 13,541.45 2016-07-01 $ 12,294.30 $ 13,592.92 2016-10-01 $ 12,372.73 $ 13,685.36 2017-01-01 $ 12,427.65 $ 13,835.34 2017-04-01 $ 12,515.86 $ 13,909.77 2017-07-01 $ 12,584.91 $ 13,986.19 2017-10-01 $ 12,706.37 $ 14,065.92 2018-01-01 $ 12,722.84 $ 14,219.83 2018-04-01 $ 12,842.02 $ 14,306.61 2018-07-01 $...

Based on the best available econometric estimates, the market elasticity of demand for your firm’s product...

Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -1.5. The marginal cost of producing the product is constant at $125, while average total cost at current production levels is $190. Determine your optimal per unit price if: a) You are a monopolist. $_____ b) You compete against one other firm in a Cournot oligopoly. $____ c) You compete against 19 other firms in a Cournot oligopoly. $_____

3.) Product with Cp = 0.75 Btu/lb°F is flowing at a rate of 3300 lb/h and...

3.) Product with Cp = 0.75 Btu/lb°F is flowing at a rate of 3300 lb/h and has to be cooled from 221°F to 160°F. ? Cooling water at 60°F at a mass flow rate of 10,000 lb/h is used. ? The overall U of the heat exchanger is 115 Btu/h ft2 °F. Calculate the outlet water temperature (will be the same for both) ____________________ and the heat exchanger area for: A co-current flow shell-and-tube heat exchanger. ____________________ A counter-current flow...

CH 13 HW Andretti Company has a single product called a Dak. The company normally produces...

CH 13 HW Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $62 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 7.50 Direct labor 9.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 7.00 ($567,000 total) Variable selling expenses 3.70 Fixed selling expenses 3.00 ($243,000 total) Total cost per unit $ 32.60 A number of questions relating...

Advanced Electronics Ltd (Advanced) manufactures and sells high-end electronic components. Three major product lines, namely, HW-01,...

Advanced Electronics Ltd (Advanced) manufactures and sells high-end electronic components. Three major product lines, namely, HW-01, HW-02 and HW-03 are now being reviewed by the CEO. The following is the contribution margin income statement of the three products for year ended 31 December 2019: HW-01 HW-02 HW-03 $ $ $ Sales 250,000 140,000 75,000 Cost of goods sold 87,500 70,000 33,750 Variable costs 12,500 25,000 3,750 Contribution margin 150,000 45,000 37,500 Fixed costs Salaries 30,000 30,000 17,500 Marketing 10,000 7,500...

Question