S = a + bF + e
where S is today’s spot rate, F is the forward rate forecast of S (from a previous period), and e is a random error with mean zero. If F is an unbiased forecast of S, then
To test whether there is forecast bias in the forward exchange rate, you might estimate the...
Suppose that you construct the following regression model to test forecast bias. Y(t) = a + b*X(t-1) + error where y(t) = spot exchange rate at time t and X(t-1) = forecasted exchange rate at time t-1. Test a=0 and b=1 using 1% or 5% statistical significance level. Regression results: a b estimated coefficient 0.053 1.197 p-value 0.291 0.365 Based on the results, explain whether forecasted values are biased (overestimated or understimated) or unbiased and why. (You don't need any...
I NEED THE ANSWER OF PART (F) (G) (H) (I), THANKS Question: The Australian Government’s Energy Efficiency Opportunities program encourages large energy using businesses to improve their energy efficiency. It does this by requiring businesses to identify, evaluate and report publicly on cost effective energy savings opportunities. As part of the process of identifying factors impacting on electricity consumption, a large super market chain took a sample of 30 stores and investigated the relationship between electricity consumption and store size....
7. In order to estimate the wage equation, individual's observed characteristics including years of schooling. In this problem, however, the error term contains unobserved characteristics such is likely that the error is correlated with the years of schooling, i.e., a highly motivated person tends to study more and also make more money. Choose the wrong statement an econometrician regresses the log of wage on motivation, and it as (a) The years of schooling is endogenous (b) The OLS estimator is...
The Australian Government’s Energy Efficiency Opportunities program encourages large energy using businesses to improve their energy efficiency. It does this by requiring businesses to identify, evaluate and report publicly on cost effective energy savings opportunities. As part of the process of identifying factors impacting on electricity consumption, a large super market chain took a sample of 30 stores and investigated the relationship between electricity consumption and store size. Consider the simple regression model: consi = β0 + β1sizei +εi Where:...
For a sample of 20 New England cities, a sociologist studies the crime rate in each city (crimes per 100,000 residents) as a function of its poverty rate (in %) and its median income (in $1,000s). A portion of the regression results is as follows. [You may find it useful to reference the t table.) F 0.05 ANOVA Regression Residual Total M S 229.2 4,464.56 Significance F 0.950 df SS 2 458.3 17 75,897.54 1976,355.9 Intercept Poverty Income Coefficients 754.4596...
For a sample of 20 New England cities, a sociologist studies the crime rate in each city (crimes per 100,000 residents) as a function of its poverty rate (in %) and its median income (in $1,000s). A portion of the regression results is shown in the accompanying table. Use Table 2 and Table 4. ANOVA df SS MS F Significance F Regression 2 2,517.3 1,258.6 7.49E-01 Residual 17 72,837.53 4,284.56 Total 19 75,354.80 Coefficients...
3. Consider you are interested in estimating the determinants of earnings. For this purpose you estimate a regression of annual earnings (EARN , in $000's) as a function of the years of education EDUC, with 12 being high school, 16 a bachelor degree, etc.) and the years of experience EXP number of years working). The estimated regression you obtain from a sample of one thousand individuals is (standard errors in parenthesis): EARN;= -50.3 +3.0*EDUC +1.5*EXP (0.42) (0.44) 7.1 3.4 RP=0.45...
Could someone please give me some guidance on how to answer these, it's like looking at another language. Thank you in advance (a) Use the built regression tool in Excel and your personalized data set (see above) to estimate the simple regression of sales revenue in dollars (Y) generated by a salesperson in his/her first year of completed service on the salesperson’s aptitude test score (X). (2 marks) When answering the following questions, assume all the assumptions of the neoclassical...
Please only answer the question if you know how to and will answer all parts of it. Homework 14 i Saved 13ahomeom The homeownership rate in the U.S. was 62.4% in 2009- In order to determine if homeownership is linked with income, 2009 state- level data on the homeownership rate (Ownership in %) and median household income (income in $) were collected. A portion of the data is shown in the accompanying table 5 ownership Income 36,660 58,284 points State...
If can't complete it all, I can post more questions just let me know!! There is an old saying in golf: "You drive for show and you putt for dough. "The point is that good putting is more important than long driving for shooting low scores and hence winning money. To see if this is the case, data on the top 69 money winners on the PGA tour in 1993 are examined. The average number of putts per hole for...