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  90.The following table provides the price and quantity data for three brands of a particular good during 2010 and 2011.  a. Use 2010 as the base year and compute the weighted aggregate price index for 2011 using the Paasche method.b. Interpret the result.   91.Consider the following table. It provides the price and.
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  76.Exhibit 18.4. The following ratio-to-moving averages for the seasonally adjusted series were found by the decomposition method applied on a time series representing quarterly sales for the last four years:  Refer to Exhibit 18.4. By how many percent the sales in Quarter 4 exceed the average quarterly sales?   A.34.20% B.38.41% C.33.00% D.35.71% 77.Exhibit 18.4. The following.
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  Multiple Choice Questions 16.Which of the following statements is true of investment returns?   A.A change in the price of the underlying asset usually has no impact on returns to investment. B.Income yield always accounts for the bulk of the returns from an investment. C.The higher the price of the asset during the time of.
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  26.A time series with observed long-term upward movements in its values is said to have   A.a cyclical component B.an increasing trend component C.a seasonally increasing component D.a decreasing trend component 27.Which of the following is not true of a time series with a cyclical component?   A.It has wavelike fluctuations lasting from several months to several years. B.It.
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  Multiple Choice Questions 17.Which of the following variables is not qualitative?   A.Gender of a person B.Religious affiliation C.Number of dependents claimed on a tax return D.Student's status (freshman, sophomore etc.) 18.Quantitative variables assume meaningful ____, whereas qualitative variables represent some ____.   A.categories, numeric values B.numeric values, categories C.categories, responses D.responses, categories 19.Consider the model y = β0 + β1x + β2d.
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  86.Exhibit 18.6. Based on quarterly data collected over the last 5 years, the following regression equation was found to forecast the quarterly demand for the number of new copies of a business statistics textbook:  ,where Qtr1, Qtr2 and Qtr3 are dummy variables corresponding to Quarters 1, 2 and 3, and t.
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  86.Consider the following table providing the prices for three different brands of chocolate-chip cookies during 2009-2010 in a particular country. (Prices are in the country's local currency.)  a. Compute the unweighted aggregate price index for 2010, using 2009 as the base year.b. Interpret the result.   87.The following table provides the prices of.
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  True / False Questions 1.A frequency distribution for qualitative data groups this data into classes called intervals and records the total number of observations in each class.   2.The relative frequency of a category is calculated by dividing the category's frequency by the total number of observations.   3.The percent frequency of a category equals.
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  104.Exhibit 18.8. Quarterly sales of a department store for the last 7 years are given in the following table.    The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality. Therefore, the linear regression model, Sales = β0 + β1Qtr1 + β2Qtr2 + β3Qtr3 + β4t.
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  26.Calculate the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year.   A.75% B.20% C.25% D.16.67% 27.Which of the following types of returns captures the changes in purchasing power?   A.Nominal returns B.Real returns C.Income yield D.Capital gains yield 28.Which of the following correctly identifies the Fisher equation?   A. B. C. D. 29.Jack Simmons is expecting to.
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  96.Exhibit 18.7. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.  The autoregressive models of order 1 and 2,   and   , were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below.Model.
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  37.The number of dummy variables representing a qualitative variable should be:   A.one less than the number of categories of the variable. B.two less than the number of categories of the variable. C.the same number as the number of categories of the variable. D.None of the above. 38.Suppose that we have a qualitative variable Month with.
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  88.The following table provides the prices of the tickets for three types of water rides at an amusement park.  a. Compute the unweighted aggregate price index for 2010, using 2009 as the base year.b. Compute the unweighted aggregate price index for 2011, using 2010 as the base year.   89.The following table provides.
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  True / False Questions 1.The only possible income from an investment is the direct cash payment from the underlying asset.   2.As long as an investor does not sell an asset, there is no capital gain or loss involved.   3.Rates of return expressed in nominal terms do not represent a true picture because they.
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  46.Which of the following is true of the linear trend model?   A.It assigns exponentially decreasing weights to older observations. B.It is a causal forecasting model. C.It can extract a long-term upward or downward steady movement in a series. D.It is used when a series involves only random fluctuations. 47.Which of the following types of trend.
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  36.Exhibit 18.2. The following table includes the information about a monthly time series.  Refer to Exhibit 18.2. What is the forecast for May when the three-month moving average method is applied?   A.19 B.5 C.20 D.21 37.Exhibit 18.2. The following table includes the information about a monthly time series.  Refer to Exhibit 18.2. When a forecast is made.
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  98.Exhibit 18.7. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.  The autoregressive models of order 1 and 2,   and   , were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below.Model.
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  100.Exhibit 18.8. Quarterly sales of a department store for the last 7 years are given in the following table.    The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality. Therefore, the linear regression model, Sales = β0 + β1Qtr1 + β2Qtr2 + β3Qtr3 + β4t.
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  92.Consider the following information regarding the price and quantity of three brands of a good sold in 1999 and 2010.  a. Compute the weighted aggregate price index using the Laspeyres method with 1999 as the base year.b. Compute the weighted aggregate price index using the Paasche method with 1999 as the.
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  102.Exhibit 18.8. Quarterly sales of a department store for the last 7 years are given in the following table.    The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality. Therefore, the linear regression model, Sales = β0 + β1Qtr1 + β2Qtr2 + β3Qtr3 + β4t.
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  True / False Questions 1.Quantitative forecasting procedures are based on the judgment of the forecaster, who uses prior experience and expertise to make forecasts.   2.Causal forecasting models are based on regression framework, where the variable to be forecast depends on one or more explanatory variables.   3.In forecasting methods, the mean square error (MSE).
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27.Exhibit 17.2. To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected and the following variables considered:  Salary = the monthly salary (excluding fringe benefits and bonuses), Educ = the number of years of education, Exper = the number.
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  94.Exhibit 18.7. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.  The autoregressive models of order 1 and 2,   and   , were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below.Model.
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  Multiple Choice Questions 16.A time series is ____.   A.any set of data recorded at the same point in time. B.a sequence of sequential observations of a variable over time. C.a set of randomly measured data points of multiple variables at the same point in time. D.any set of data collected without regard to differences in.
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67.Exhibit 17.5. An over-the-counter drug manufacturer wants to examine the effectiveness of a new drug in curing an illness most commonly in older patients. Thirteen patients are given the new drug and 13 patients are given the old drug. To avoid bias in the experiment, they are not told which.
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102.Exhibit 17.9. A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank. The rating is based on the probability of defaulting on credit cards and is as follows.  To estimate this probability, she decided to use the logistic model:  ,where,y = a binary.
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  66.If the model   is applied, which of the following indicates no seasonality?   A.The sum of the adjusted seasonal indices equals the number of seasons. B.The average of the adjusted seasonal indices equals 1. C.Every adjusted seasonal index is practically 1. D.The product of the adjusted seasonal indices equals 1. 67.In the decomposition method, which of.
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  84.Consider the following table that provides the simple price indices for an item from 2006 through 2008.  a. If the price of the good in 2006 was $8, compute the price in 2008.b. If the base year is changed to 2007, compute the value of the simple price index in 2008.   85.Consider.
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  86.A survey of 400 unemployed people was completed at a job fair. Each person was asked to categorize their job interests. The accompanying relative frequency distribution was constructed.  a. Construct the corresponding frequency distribution. How many of these people designated that the computer and mathematical industry was their job interest?b. Construct.
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  46.Exhibit 19-4. Consider the following data on the prices (in dollars) of three items, A, B, and C, from 2000 through 2002.  Refer to Exhibit 19-4. Compute the unweighted price index for the three items for 2000, using 2001 as the base year.   A.100.08 B.98.56 C.100.85 D.99.92 47.Exhibit 19-4. Consider the following data on the prices.
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100.Exhibit 17.9. A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank. The rating is based on the probability of defaulting on credit cards and is as follows.  To estimate this probability, she decided to use the logistic model:  ,where,y = a binary.
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  Essay Questions 70.Nicole Watson purchased a share of McAllister Inc., a year back when it was trading at $75. She also earned a dividend of $4 on this. The price of the same share has now increased to $87.a. Compute the annual capital gain from this share.b. Compute the annual income.
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  56.Exhibit 18.3. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.    Excel scatterplot shown above indicates that the annual revenues have an increasing trend. Therefore, linear, exponential, quadratic and cubic models were used to fit the trend, and the following relevant.
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  74.The following table provides the adjusted close prices of the shares of firm X for three consecutive months of the last year.  a. Compute the monthly return for May.b. Compute the monthly return for June.   75.The income yield from a one-year infrastructure bond purchased today is 0.5%. Compute the real return from.
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  88.Exhibit 17.7. To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected and the following variables considered:Salary = the monthly salary (excluding fringe benefits and bonuses),Educ = the number of years of education,Exper = the number of months of.
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