We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS - Assignment Example

Comments (0) Cite this document
Summary
Q1 1. The estimated equation is: However, from table 1 we note that the t-statistic values are greater than the 5% critical value of 1.96 for the variables price, radio and the squared value of radio. The variable TV as well as the squared value of the variable price is significant only at the 10% level…
Download full paperFile format: .doc, available for editing
Polish This Essay95.3% of users find it useful
RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS
Read TextPreview

Extract of sample
"RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS"

Download file to see previous pages Thus, while the beta coefficients measure the first order impacts, i.e., the slope of the partial functions, the theta coefficients measure the second order impacts or the curvature. The expected signs on these coefficients will depend upon the nature of the relationship that the variable has with sales revenue. If the true relationship that is being estimated is truly nonlinear, then the beta coefficients themselves would be functions of the corresponding independent variables. The signs would depend upon the value of the independent variable itself. For instance, a rise in price of mobile phones would lead to a certain rise in revenue if other things, in particular the number of units sold remained unaltered. However, as price rises, the demand for the product would go down thereby implying a potential fall in the overall sales. The final impact would depend upon the price elasticity of demand of the product. For lower level of sales the demand would be highly inelastic implying that rising price would still generate increased revenue. But if the demand became elastic, then there would be a definite decline in revenue. Since demand for average mobile phones tend to be relatively inelastic, we should expect to see a positive beta coefficient and a negative theta coefficient. In case of advertising, again the beta coefficient measures the impact of a rise in advertising on total sales while the theta coefficient measures the marginal impact. We should expect that increase in advertising should stimulate additional sales. However, the incremental benefits of more advertising typically are found to be declining. In simpler terms, as there is more and more advertising, the incremental impact on sales declines. Thus, we should expect a positive beta but a negative theta coefficient for all the advertising variables. Table 1: Results of OLS regression, problem 1 Dependent Variable: REVENUE Method: Least Squares Date: 09/29/11 Time: 13:10 Sample: 1 60 Included observations: 60 Coefficient Std. Error t-Statistic Prob.   C 359.1101 76.04848 4.722120 0.0000 PRICE 2.880176 1.411429 2.040609 0.0465 PRICE^2 -0.011268 0.006384 -1.765162 0.0835 TV 6.383748 3.514018 1.816652 0.0751 TV^2 -0.418966 0.359010 -1.167003 0.2486 NEWSPAPER 3.480550 2.251321 1.546003 0.1283 NEWSPAPER^2 -0.107221 0.160149 -0.669510 0.5062 RADIO 11.10707 1.184501 9.377007 0.0000 RADIO^2 -0.336564 0.053449 -6.296872 0.0000 R-squared 0.876161     Mean dependent var 646.5073 Adjusted R-squared 0.856736     S.D. dependent var 30.92782 S.E. of regression 11.70626     Akaike info criterion 7.895606 Sum squared resid 6988.868     Schwarz criterion 8.209758 Log likelihood -227.8682     Hannan-Quinn criter. 8.018488 F-statistic 45.10326     Durbin-Watson stat 2.333861 Prob(F-statistic) 0.000000 2. We test the joint significances of the variables first in levels (table 2) and then in squares (table 3). Table 2: Testing Joint significance of the variables in their levels Wald Test: Equation: Untitled Test Statistic Value   df     Probability F-statistic 8.295663 (3, 51)   0.0001 Chi-square 24.88699 3   0.0000 Null Hypothesis Summary: Normalized Restriction (= 0) Value   Std. Err. C(2) - C(8) -8.226895 1.877380 C(4) - C(8) -4.723323 3.679021 C(6) - C(8) -7.626522 2.427360 Restrictions are linear in coefficients. The ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS Assignment”, n.d.)
Retrieved from https://studentshare.org/statistics/1433359-relevent-econometric-outputs-from-eviews
(RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS Assignment)
https://studentshare.org/statistics/1433359-relevent-econometric-outputs-from-eviews.
“RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS Assignment”, n.d. https://studentshare.org/statistics/1433359-relevent-econometric-outputs-from-eviews.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Economic (quatitative research methods)
28). Panel data is one of the three types of data generally available for analysis; the other types being timer series and cross section data (Gujarati 2004, p. 636). , Panel data analysis combines the features of time series and cross-section data analysis (Gujarati 2004, p.
6 Pages(1500 words)Assignment
An Examination of Means of Application and Core Function in Predicting Crime
The application of CompStat to “predict” crime has become an indispensible tool that many law enforcement entities use as a way to maximize available resources in a way that can help reduce the overall prevalence of crime in the aforementioned “hotspots” and zones in which certain types of crime are likely to exist.
5 Pages(1250 words)Assignment
Econometric Analysis
The last two are expressed as proportions. The data has been derived from 'London Metropolitan University's' Website section "Quantitative Research Methods" Module: ECP054C 'Assessment for January, 2007, French Consumption Data (Excel file). Econometrics itself means 'economic measurement' (Econometrics, Wikipedia, 2006).
7 Pages(1750 words)Essay
Econometric Regression Analysis
For the completing of the dissonance to be fruitful, the authors have offered a quantitative method for studying the experiential economic literature. Meta-regression analysis (MRA) is the degeneration review of regression reviews that has been used to explain the concept in the article. A Meta-Regression Analysis tends to objectify the analysis process.
2 Pages(500 words)Assignment
Community Members
It is for the abundance of such health needs that demand urgent attention and interventions that the poor people in Philadelphia have been selected as the most preferred population for the health promotional proposal. Archival data
1 Pages(250 words)Assignment
Sampling strategy
This is a technique that involves the selection of respondent with no preconceived idea by either the researcher or the members of the population as to who may possibly be part of the sample size and who will not be part of the
1 Pages(250 words)Assignment
Critique of Professional Lecture #1 and Lecture #2
The individuals use technology to hasten communication among different individuals. The individuals use technology to produce more outputs. The paper includes a discussion on the modern day technologies like
4 Pages(1000 words)Assignment
Current Event Paper
In addition, production of assembled items comprises of three components; Material requirements planning regulate the ordering and assembly of inputs for a timely completion of outputs. In addition, MRP eliminates the levels of Just-In-Time processing by ensuring that there
1 Pages(250 words)Assignment
Introduction of Econometric
In this study, an experiment was done to determine the key determinant of wage variations. Using a sample of 1000 individuals, the extent and significance of education and experience impact on hourly pay was determined. Moreover, it was also
3 Pages(750 words)Assignment
Eviews exercise
The p-value is given as 0.000 (a value less than 5% significance level), we therefore reject the null hypothesis and conclude that mother’s and
4 Pages(1000 words)Assignment
Let us find you another Assignment on topic RELEVENT ECONOMETRIC OUTPUTS FROM EVIEWS for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us