Assignment Requirements: Editing
I need u do 2nd paper..the requirement and data is same as order 81203580 , use Gretl and change the structure and look cannot be similar with the first one
Economic Analysis
Question 1
Multiply the observation in each variable by 100
Pb1=52
52*100=5200
Pb1c=5200
Pb2=52
52*100=5200
Pb2c=5200
Pb3=52
52*100=5200
Pb3c=5200
Question 2
Sb1= a! +a! b1c+a! pb2c+a! pb3c+E
SB1=52+5200+5200+5200+E
Estimates a2, a3 and a4 represent the total revenue generated from the sale of all the three brands of canned tuna.a1 is a constant and E represents any other revenue that may come in from the sale of the canned tuna.
Question 3
Significance test
Variable | Obs Mean Std. Dev. Min Max
————-+——————————————————–
sal1 | 52 6718.712 6915.083 1762 32820
apr1 | 52 .7825 .0980371 .61 .92
apr2 | 52 .8059615 .1121494 .43 .93
apr3 | 52 .7936538 .0800987 .59 .9
disp | 52 .4423077 .501506 0 1
————-+——————————————————–
dispad | 52 .1730769 .3820047 0 1
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(0.7825-3)/ (0.980371/7.21)
=1.918
(0.8059615/3)/ (0.1121494/7.21)
=17.27
(0.7936538/3)/ (0.800987/7.21)
=2.38
1.98+17.27+2.38=21.63
0.01*21.63=0.2163
It gives a 0.2163 significant level which shows higher profitability.
Price increase on brand one
100%-5%=95%
95%*5200=494o
Increase in price of brand one reduces its sales and increases the sales of brand three.
Question 4
RP2=PBI/PB2
RP3=PB1/PB3
PB1=0.7825*52=40.69
PB2=0.8059615*52=41.91
PB3=0.7936535*52=41.27
RP2=40.69/41.91=0.97
RP3=40.69/41.27=0.99
SB1=52+a!0.97+a!0.99+E
The relationship between the sales (SB1) and the relative prices should ne inversely related. An increase in price leads to a decrease in sales thus the signs do not agree.
Question 5
SBI=Log 52+52 log 0.97 +52 log 0.99+E
Question 6
Brand three is the strongest competitor to brand one. It gives the highest ratio index of 0.99
Question 7
Relative price elasticity
0.7825/0.97=0.8067
0.7825/0.99=0.7904
The price elasticity of brand one changes with o.8067 and 0.7904 in comparison to brand two and three respectively. This shows by how much a change in price of brand two and brand three affects the sales of brand one.
Question 8
(0.7825-0.97)/ (0.0980371/7.21)=-13.78
(0.7825-0.99)/ (0.0980371/7.21)=-15.26
-13.78- (-15.26) =-29.04
95%*-29.04=-27.59
An increase in prices of brand 2 and three leads to a 27.59 decrease in sales of brand one.
Question 10
The two models gave econometric problems in that the E in them is hard to determine and hence the results projected by the models are not real but hypothetical. The observations are taken to be constant in both models and this cannot hold since there are many factors which affect the observations. The second model is a bit realistic since it shows what would happen to the sales of brand one if the prices of brand two and three are re adjusted. Thus the model is realistic and rational conclusions can be drawn from the model.
References
Top of Form
Bali, N., & Goyal, M. (2003). A textbook of engineering mathematics: for B.Sc. (Engg.). B.E., B. Tech., M.E. and equivalent professional exams. New Delhi, Laxmi Publications.
Borradaile, G. J. (2003). Statistics of earth science data: their distribution in time, space, and orientation; 52 tables. Berlin, Springer.
Greene, J., & D’oliveira, M. (2006). Learning to use statistical tests in psychology. Maidenhead, England, Open University Press. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=290384.
O’gorman, T. W. (2012). Adaptive tests of significance using permutations of residuals with R and SAS. Hoboken, N.J., John Wiley.
Quinn, G. P., & Keough, M. J. (2002). Experimental design and data analysis for biologists. New York, Cambridge University Press.
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