General guidelines:

Use EXCEL or PHStat to do the necessary computer work.

Do all the necessary analysis and hypothesis test constructions, and explain completely.

Read the textbook Chapter 13. Imagine that you are managing a mobile phone company. You want to construct a simple linear regression model to capture and represent the relationship between the number of customers and the annual sales level for a year with 95% confidence. You had conducted a pilot study for the past fifteen years and collected yearly observations as given in the following data.Where the number of customers in a year is represented by the Profiled Customers variable, measured by million customers unit, and the sales level is represented by the Annual Sales variable, measured by million US-dollars unit.

1) Investigate the agreement between the model and the data set for:

A) LINEARITY.

A1) Construct the "Dot Plot", a.k.a. "Scatter Plot," for this data. Visually inspect for the linear relationship between the number of customers and the sales level. Make comments based on your observations.

A2) Conduct the F-Test for linearity.

A3) If you have seen evidence of linearity in the F-Test, then:

Conduct the t-Test for the partial slope.

Construct the 95% Confidence Interval Estimator for the partial slope.

Thus, make comments about the linear relationship between the Profiled Customers and the Annual Sales, based on the partial slope information.

B) NORMALITY.

Construct the "Normal Probability Plot" for the Annual Sales variable, and make comments about the normality of annual sales level, based on your observations.

C) HOMOSCEDASTICITY.

Construct the "Residual Plot" and make comments about the variance of annual sales level, based on your observations.

D) INDEPENDENCE.

This data set is a Time-Series. Hence, investigate for the independence of observations in this time-series, based on the Durbin-Watson test.

2) If there is evidence of agreement between the model and data, and independence of observations, then construct the simple linear regression equation for this data set, based on the least square error method.

2A) Construct the 95% confidence interval for the actual average annual sales level for all the years that you have 5 million customer in a year,

2B) Construct the 95% prediction interval for the actual annual sales level for one year that you have 5 million customers in that year.

Consider an exchange economy with 258814 people and 14512 goods and assume each good is traded under perfectly competitive conditions. How many equations must be solved to find the (general) equilibrium in this economy?

This is essay topic

1. What was the Afroeurasian trade network? Use specific examples of who was involved, what they traded. Explain the deterioration of the Afroeurasian trade network which existed from the 12^th-14^th century.

b) Write brief notes about the key features, relevance and there role in the capital markets for the following: I. Private Equity Funds II. Venture Capital Funds III. Exchange Traded Funds

The average retail price of Gasoline(all types) for the first half of 2005 was 212.2 cents. What would the standard deviation have to be in order for a 24% probability that a gallon of gas costs less than $1.80? Round z-value calculations to 2 decimal places and final answer to the nearest cent

TRUE OR FALSE

The wave of privatizations of public equity REITs that occurred from 2005 through the first half of 2007 was driven, in great part, by the availability of plentiful and cheap debt capital. This trend then reversed due to the lack of debt capital following the Global Financial Crisis, and may now be repeating itself.

Macro Company has the following adjusted accounts and balances at June 30:

. An analyst in a daily business segment broadcasted on the national TV quoted the following statement:                                                                                                                           

“Looking at the historical market prices of AB and CD stocks, we find that AB have been on an average traded at Rs. 120 for last three years, indicating low beta because its price moved very little. On the other hand, CD stock showed that it has been traded at a high of Rs. 1050 and a low of Rs. 550 (its current market price) during the same time period as stock AB. Thus, CD stock has shown large variation in terms of its stock prices indicating a high beta.” Do you agree with his statement? Explain

Which of the following statements is likely to be true?

A)Everything else equal, an increase in the supply of dollars in exchange for pesos will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.

B)If a country wants to keep the domestic currency overvalued against a foreign currency, it will buy the domestic currency and sell the foreign currency.

C)If a country wants to keep a foreign currency undervalued against the domestic currency, it will buy the foreign currency and sell the domestic currency.

D)Everything else equal, a decrease in the supply of dollars in exchange for pesos will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.