Which of the following can be used to quantify the overall statistical significance of a regression?
Correct answer(s):
- F-statistic
Topic
Quantitative Demand Analysis
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Quizzes in Quantitative Demand Analysis
Which of the following provides a measure of the overall fit of a regression?
Correct answer(s):
- The F-statistic and R-square
Which of the following is used to determine the statistical significance of a regression coefficient?
Correct answer(s):
- T-statistic
The demand for video recorders has been estimated to be QV = 134 – 1.07PF + 46PM -2.1PV – 5I, where QV is the quantity of video recorders, PF denotes the price of video recorder film, PM is the price of attending a movie, PV is the price of video recorders, and I is income. Based on the estimated demand equation we can conclude:
Correct answer(s):
- Video recorders are inferior goods
The statistical analysis of economic phenomenon is defined as:
Correct answer(s):
- Econometrics
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then the demand for good X is:
Correct answer(s):
- Inelastic
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then good X is:
Correct answer(s):
- A normal good
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then the cross-price elasticity between goods X and Y is:
Correct answer(s):
- 0.25
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know that the own-price elasticity for good X is:
Correct answer(s):
- Inelastic cannot be calculated from the existing information
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know good x is:
Correct answer(s):
- A normal good
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know goods x and y are:
Correct answer(s):
- Complements
You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10%?
Correct answer(s):
- 66.7%
Suppose demand is given by QX d = 50 – 4PX + 6PY + AX , where PX = $4, PY = $2, and AX = $50. What is the quantity demanded of good X?
Correct answer(s):
- 96
Suppose demand is given by QX d = 50 – 4PX + 6PY + AX, where PX = $4, PY = $2, and AX = $50. What is the advertising elasticity of demand for good X?
Correct answer(s):
- 0.52
You are the manager of a supermarket and know that the income elasticity of peanut butter is exactly -0.7. Due to the recession, you expect incomes to drop by 15% next year. How should you adjust your purchase of peanut butter?
Correct answer(s):
- Buy 10.5% more peanut butter
If the income elasticity for lobster is 0.4, a 40% increase in income will lead to a:
Correct answer(s):
- 16% increase in demand for lobster
An income elasticity less than zero tells us that the good is:
Correct answer(s):
- An inferior good
The elasticity that measures the responsiveness of consumer demand to changes in income is the:
Correct answer(s):
- Income elasticity
Suppose the demand function is QX d = 100 – 8PX + 6PY – M. If PX = $4, PY = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?
Correct answer(s):
- 0.17
If the price of pork chops falls from $8 to $6, and this leads to an increase in demand for apple sauce from 100 to 140 jars, what is the cross price-elasticity of apple sauce and pork chops at a pork chop price of $6?
Correct answer(s):
- -0.86