Explain how the residuals of an ARMA model can be used to diagnose potential model mis-specification issues? If any, how can these misspecification issues, be addressed?
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Explain how the residuals of an ARMA model can be used to diagnose potential model mis-specification issues? If any, how can these misspecification issues, be addressed?
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- The difTerence(s) between the basic EOQ model and the production order quantity model is( are) that:a) the production order quantity model does not require the assumption of known, constant demand.b) the EOQ model does not require the assumption of negligible lead time.c) the production order quantity model does not require the assumption of instantaneous delivery.d) all of the above.Describe the recommended approach towards determining model specification.How does the R2 help in determining an appropriate model? Is theideal model the one with the highest R2? Should a regressor be included in the model if it increases the model R2?There are four key relationships upon which the Standard Model is based. Please list each of the four relationships and give one example for each
- You and your research partner want to use Instrumental Variable analysis to write an econometrics paper and find causal estimates. Your partner argues that because the residuals and the instrument are uncorrelated, the exogeneity requirement is satisfied. What do you tell your research partner: a) You agree, the exogeneity requirement is satisfied by construction b) You agree, the exogeneity requirement is satisfied by their demonstration c) You disagree, you would need the results of the White Test to make this conclusion d) You disagree, the exogeneity requirement cannot be tested as we do not observe the error terms e) You cannot make any conclusions with the current informationA student prepared the following spreadsheet model to calculate the final price of clothing items which are sold at a discount. To be complete, the student included a calculation of sales tax in the final price, given the original price (180), discount (0.2), and sales tax rate (0.09) shown below. A B 1 2 Original Price 180 3 Discount(%) 0.2 4 Discount ($) = B2 × B3 5 Net Price = B2 − B4 6 Sales Tax(%) 0.09 7 Sales Tax($) = ROUND(B5 × B6,2) 8 Final Price = ROUND(B5 + B7,2) Determine what values the spreadsheet should display. (Round your answer to 2 decimal places.)The soft goods department of a large department store sells 184 units per month of a certain large bath towel. The unit purchase cost of a towel to the store is $2.5 and the cost of placing an order has been estimated to be $11. The store's inventory carrying cost is 33% of the purchase cost of the goods. Suppose that the demand rate is a constant and the EOQ model is used. What is the optimal annual cost of placing orders and holding inventory?
- After interviewing WWII concentration camp survivors, a researcher submits the interview transcripts to frequency counts for mentions of religious faith. A quantitative analysis is run on the resulting frequency counts. This might be considered: O within-stage quantitative model O across-stage quantitative model within-stage mixed model not enough information to determine O across-stage mixed modelA large company in the communication and publishing industry hs quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.01 xDemand for an annual printing of this particular product. The foxed costs per year (ie. per printing) = $4T 000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 7,000 units per year. The maximum profit that can be achieved is S. (Round to the nearest dolar.) The unit price at the point of optimal demand is S per unit (Round to the nearest cent)A(n) variable is calculated from within the model. A(n). endogenous; endogenous endogenous; exogenous exogenous; endogenous exogenous; exogenous none of the above variable can never be taken as given.