Question

In: Math

Many years ago, Detroit had a six-month newspaper strike that closed down all its newspapers. During...

  1. Many years ago, Detroit had a six-month newspaper strike that closed down all its newspapers. During the strike, Detroit’s suicide rate fell very sharply (that is, there were far fewer suicides), but returned to its usual rate when the papers resumed publishing. Do the following: (a) Make up a theoretical model that would account for this observation and (b) generate a total of two interesting hypotheses from the model that could potentially be tested.

Solutions

Expert Solution

(a) We may assume the linear relationship between the variables and fit a linear regression line to capture the data.

The model will be :    , where i=1(|) n , n is the total number of days

Here is the number of Detroit's suicides on ith day, is the number of newspapers sold on ith day and is a categorical variable which takes value 1 if there is a newspaper strike on ith day and 0 if there is no strike on ith day.

(b) (1) We can test :   

This will test if there is exist a relationship between  number of Detroit's suicides on ith day and number of newspapers sold on ith day.

(2) Again we can test:

This will test if there is exist a relationship between  number of Detroit's suicides on ith day and

Another test we can conduct is

If the null hypothesis of this test is accepted then we need not to conduct the above two test that's why I want to conduct the above two tests separately.


Related Solutions

Six years ago, an investor bought a property for $2.5 million with 10% down and a...
Six years ago, an investor bought a property for $2.5 million with 10% down and a 20 year mortgage with an interest rate of 5.6% a year. What were the monthly payments? 5 points Today the company sold the property and had an annual return of 10% on their investment. What was the price of the property when it was sold? 5 points How much equity was in the property when it was sold? 5 points If the company had...
With so many Thai businesses closed down during, what do you think is the best way...
With so many Thai businesses closed down during, what do you think is the best way for the economy improve, and to boost productivity. Be specific with your comments about technology, human capital, labour, natural resources, and physical capital.
Company A repurchased the bond which had been issued many years ago. It has a face...
Company A repurchased the bond which had been issued many years ago. It has a face value of $800,000 and an unamortised premium of $42,000. The bond was repurchased at 106. record the journal entry that the company made when it repurchased the bond.
Due to the ongoing COVID-19 pandemic, your employer closed down and retrenched all its employees. You...
Due to the ongoing COVID-19 pandemic, your employer closed down and retrenched all its employees. You decided to return to your hometown, a small town in the east coast of MARGATE. You noticed that there was no food delivery service business in the town and decided to start such a service using your cars. Your delivery riders would collect the orders from food outlets in the town and deliver the food to customers for a fee. However, you did not...
Graphing Mixed Cost During a recent six-month period, Wade Corporation had the following monthly production volume...
Graphing Mixed Cost During a recent six-month period, Wade Corporation had the following monthly production volume and total monthly maintenance expense: Units Produced Maintenance Expense March ...................................................21,000 140,000 April ....................................................15,000 112,000 May.....................................................30,000 184,000 June ....................................................27,000 172,000 July .....................................................35,000 208,000 August ..................................................25,000 160,000 Required Assume that all volumes are in the relevant range. a . Explain why the data indicate that the maintenance expense is neither a fixed nor a variable expense. b . Construct a scattergraph and plot the maintenance...
Escobar Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago....
Escobar Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago. As a result, it has a deficit in accumulated E & P at the beginning of the year of $340,000. This year, however, Pebble earned a significant profit; taxable income was $240,000. Consequently, Pebble made two cash distributions to Martha, its sole shareholder: $150,000 on July 1 and $200,000 December 31. The following information might be relevant to determining the tax treatment of the...
1. During recessionary periods, bonds that were issued many years ago have a higher coupon rate...
1. During recessionary periods, bonds that were issued many years ago have a higher coupon rate than currently issued bonds. Therefore, they may sell at a premium, a price higher than their face value, because of currently low coupon rates. A $50,000 bond that was issued 15 years ago is for sale for $62,000. What rate of return per year will a purchaser make if the bond coupon rate is 20% per year payable quarterly, and the bond is due...
A company had the following purchases and sales during its first month of operations: January 1:
A company had the following purchases and sales during its first month of operations:   January 1: Purchased 10 units at $400 per unit; January 9: Sold 6 units at $1200 per unit; January 17: Purchased 8 units at $550 per unit; January 27: Sold 7 units at $1200 per unit   Using the Periodic weighted average method, what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places)
Jackson Inc. had the following production and cost information for its fabrication department during the month...
Jackson Inc. had the following production and cost information for its fabrication department during the month of March (materials are added at the beginning of the fabrication process): Production: Units in process, March 1, 50% complete with respect to conversion 5,000 Units completed 32,600 Units in process, March 30, 60% complete 6,000 Costs: Work in process, March 1: Materials $20,000 Conversion costs 15,100    Total $35,100 Current costs: Materials $62,500 Conversion costs 105,000    Total $167,500 Jackson uses the weighted average method....
A company had stock outstanding as follows during each of its first three years of operations:...
A company had stock outstanding as follows during each of its first three years of operations: 3,000 shares of 10%, $100 par, cumulative preferred stock and 51,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. If necessary, round dividends per share to the nearest cent. If your answer is zero, please enter "0".   PreferredCommon YearDividendsTotalPer ShareTotalPer...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT