Consider a portion of monthly return data (In %) on 20-year Treasury Bonds from 2006–2010.

Estimate a linear trend model with seasonal dummy variables to make forecasts for the first three months of 2011. (Round answers to 2 decimal places.)

You may need to use the appropriate technology to answer this question.

Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing homes to fall nationwide.† You would like to see if the data support this conclusion. The file HomePrices contains data on 30 existing home sales in 2006 and 40 existing home sales in 2009.

(a)

Provide a point estimate of the difference (in dollars) between the population mean prices for the two years. (Use year 2006 − year 2009. Round your answer to the nearest dollar.)

$

(b)

Develop a 99% confidence interval estimate of the difference (in dollars) between the resale prices of houses in 2006 and 2009. (Use year 2006 − year 2009. Round your answers to the nearest dollar.)

$  to $

(c)

Would you feel justified in concluding that resale prices of existing homes have declined from 2006 to 2009? Why or why not?

To answer this question, we need to conduct a hypothesis test.

State the null and alternative hypotheses. (Let μ₁ = mean home price in 2006 and let μ₂ = mean home price in 2009.)

H₀:μ₁ − μ₂ > 0

H_a:μ₁ − μ₂ ≤ 0

H₀:μ₁ − μ₂ ≤ 0

H_a:μ₁ − μ₂ > 0

H₀:μ₁ − μ₂ ≠ 0

H_a:μ₁ − μ₂ = 0

H₀:μ₁ − μ₂ = 0

H_a:μ₁ − μ₂ ≠ 0

H₀:μ₁ − μ₂ ≤ 0

H_a:μ₁ − μ₂ = 0

Find the value of the test statistic. (Round your answer to three decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion. (Use α = 0.01)

Do not reject H₀. We can conclude that existing home prices have declined between 2006 and 2009.

Do not reject H₀. We can not conclude that existing home prices have declined between 2006 and 2009.  

Reject H₀. We can conclude that existing home prices have declined between 2006 and 2009

.Reject H₀. We can not conclude that existing home prices have declined between 2006 and 2009.

The market for iron is perfectly competitive and all existing producers and potential entrants are identical. Consider the following information about the price of iron.

Between 2000 and 2005, the market price was stable at $2/pound.

In the first three months of 2006, the market price doubled reaching $4/pound, where it stayed for the remainder of 2006.

Throughout 2007 and 2008, the price declined, eventually reaching $2/pound by the end of 2008. Between 2008 and 2012, the price remained stable at $2/pound.

Assume that technology has not changed and that input prices have remained constant over the period. Using ONLY words, explain this pricing pattern over the period.

1.. Suppose $2000 is invested at 6% annual interest rate for 10 years and the interest is compounded monthly. How much will the investment be worth at the end of the 10 years?

2. Suppose John invests his tax refund of $1666 in an account that earns interest compounded continuously at the rate of 3.5%. How much will John have in 7.5 years? Show your work details.

3. What is the present value of an account that will be worth $10,000 in 5 years if the annual interest rate is 10% and the interest is compounded continuously? Show your work details.

4.A company shows the following profit figures for the years 2000, 2004, and 2008. In 2000 the profit was $250 million; in 2004, the profit was $400 million; and, in 2008, the profit was $550 million. If x is the number of years after 2000, write a linear function representing this profit. Using this linear model determine what the projected profit will be in the year 2020. Show work details.

5. The table shows the year and the number of people unemployed in a particular city for several years. Determine whether the trend appears to be approximately linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 15 people?

Year                          1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Number Unemployed 750   670   650   605   550   510   460   420   380   320

6. Wilbur and Cody are selling pies for a school fundraiser. Customers can buy cherry pies and blackberry pies. Wilbur sold 8 cherry pies and 2 blackberry pies for a total of $110. Cody sold 7 cherry pies and 6 blackberry pies for a total of $177. What is the cost each of one cherry pie and one blackberry pie? Show work details.

(a) Use Excel, MegaStat, or MINITAB to fit three trends (linear, quadratic, exponential) to the time series. (A negative value should be indicated by a minus sign. Do not round the intermediate calculations. Round your final answers to 2 decimal places.)

(b) Use each of the three fitted trend equations to make numerical forecasts for the next 3 years. (Round the intermediate calculations to 2 decimal places and round your final answers to 1 decimal place.)

I am having issue predicting the future trendlines.I got 11407.7, 12433.4, and 13551.4 and these were incorrect. Can you please help me learn what I am doing wrong.

A) What is the cyclical deficit, and when is it appropriate to have such a deficit? Why?

B) How do automatic stabilizers, on both the expenditure and revenue sides of the budget, respond during a recession?

C) Use the table below to answer the following questions. The federal deficit fell from $1,300 billion in 2011 to $680 billion in 2013. How much of this change was due to the growing economy? How much of this change was the result of fiscal restraint ?

3. Inflation a) What is the difference between real and nominal GDP? _______________________________________________________________ _______________________________________________________________

b) Suppose the base year is 2005, and the only goods in the economy are apples and bananas. In 2005 both apples and bananas cost $1, and 100 apples and 100 bananas are produced. In 2006, apples cost $20 and bananas cost $5, and 50 apples and 200 bananas are produced.

1. What is nominal GDP in 2005? _______ In 2006? _______ 2. What is real GDP in 2005? _______ In 2006? _______

3. What is the GDP deflator in 2005? _______ In 2006? _______

4. Suppose the fixed basket of goods is 1 apple and 2 bananas. 5. What is the level of the CPI in 2005? _______ In 2006? _______ 6. What is the CPI inflation rate from 2005 to 2006? _______

c) What are the three effects that bias the measurement of CPI? i. _____________________ ii. _____________________ iii. _____________________

d) Which of the three effects listed in part c does each of the following illustrate? 1. US households in 2010 spent a larger fraction of their income on televisions than they did in 1950. __________________________ 2. All televisions available in 2010 had higher resolution than any televisions available in 1950. __________________________ 3. In 1950, no US household had a plasma screen television, but in 2010 they are widely available. __________________________

e) Suppose the average television purchased in 1950 cost $200, and the average television purchased today costs $700.

1. What is the percentage change in the average television price? _______

2. Taking into account the effects in part c, is this percentage increase likely an underestimate or overestimate of the true change in the cost of televisions? ____________

3. Why? ____________________________________________________

Consider a portion of monthly return data (In %) on 20-year Treasury Bonds from 2006–2010.

Source: Federal Reserve Bank of Dallas.

Estimate a linear trend model with seasonal dummy variables to make forecasts for the first three months of 2011. (Round answers to 2 decimal places.)

DATA:

Toledo Toy, a manufacturer of infants’ blocks, presented the following data in its last annual report. This trend analysis begins with the year of formation, 2003.

Required:

The table below includes reading test scores for 30 students in a 6^th grade class. Follow the steps outlined in the Corder & Foreman’s textbook (pp. 24-27) to examine the sample’s skewness and kurtosis for normality for an alpha (α) level of .05. Your response should be organized according to those steps. Report your findings. (10 points) (5 points each for skewness and kurtosis. For each 5 points= 2 points for SPSS Printout, 2 points for Z, and 1 point for interpretation)

Sixth-Grade Reading Test Scores

79         74         78         70         80         72         75         80         83         80       

74         73         70         74         81         75         81         82         76         71        

76         74         81         74         74         77         76         74         80         76