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3 years ago

You obtain the following estimates for an AR(2) model of some returns data

Business

1 answer:

Sergio039 [100]3 years ago

4 0

Answer:

AR(2) model is not stationary

Explanation:

Given model : Yt = 0.803yt-1 + 0.682yt-2 + ut ---- ( 1 )

ut = noise error process

Aim : Check estimated model for stationarity

<em>step 1 : </em>represent the estimated polynomial of the model ( where: ut ∪ N(o,б^2 ) rewrite equation 1

Yt - 0.803yt-1 - 0.682yt-2 = ut ------- ( 2 )

hence the polynomial can be represented as :

( 1 - 0.803B - 0.682B^2 )Yt = ut

Characteristic of the obtained polynomial can be represented as ;

1 - 0.803λ - 0.682λ^2 - 1 = 0

attached below is the remaining part of the solution

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Adam and barb go to the store to purchase some lottery tickets. without looking at the price, adam says "i’ll take 10 lottery ti

Shtirlitz [24]

Answer:

Price elasticity of demand for Adam=0

Price elasticity of demand for Barb=1

Explanation:

Price elasticity of demand = %age change in demanded QTY / %age change in demanded price

The price is not important for Adam, and he demands a fixed quantity, hence his demand curve is vertical. A perfectly vertical demand curve is can inelastic demand curve and has price elasticity =0

The quantity is not important for Barb, and he demands a fixed price, hence his demand curve is horizontal. A perfectly horizontal demand curve is has price elasticity =1

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3 years ago

A leasea) Must be for at least one yearb) Conveys the right of occupancy to anotherc) Must include the landlord paying the taxes

Y_Kistochka [10]

Answer:

b) Conveys the right of occupancy to another

Explanation:

A lease is an agreement made between a lessee and a lessor for using an asset. A lessee is a user who pays to the lessor who is the owner for any asset which can be a building, property or a vehicle. The lessee owns the right to use the asset by paying to the lessor for the fixed duration. Usually, the asset put into a lease are tangible but can be intangible too.

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3 years ago

Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that banks do not hold excess rese

LuckyWell [14K]

Answer:

The fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

Explanation:

The Federal Reserve wants to increase the money supply by $200.

The reserve requirement is 10%.

The fed can increase the money supply by purchasing bonds from commercial banks.

The money supply will increase by money multiplier times worth of bonds.

Increase in money supply = $\frac{1}{RR}\ \times\ Worth\ of\ bonds\ purchased$

$200 = $\frac{1}{0.1}\ \times\ Worth\ of\ bonds$

Worth of bonds = $\frac{200}{10}$

Worth of bonds = $20

So the fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

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3 years ago

On October 1, Willette Company borrowed $120,000 cash and issued a six-month, 10% promissory note. Interest is payable at maturi

viktelen [127]

Answer:

Cash borrowed = $120,000

Interest on promissory note = 10%

The journal entry is as follows:

On December 31,

Interest expense A/c Dr. $3,000.00

To Interest payable $3,000.00

(To record interest accrued on note)

Working notes:

Interest expense:

= $120,000 × 10% × (3/12)

= $120,000 × 0.1 × (1/4)

= $3,000

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3 years ago

While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulatio

masha68 [24]

Answer:

a. people face tradeoffs.

Explanation:

Tradeoffs means sacrificing something in order to achieve another thing.

Firms are sacrificing some of their profits in order to have an healthier and cleaner environment.

I hope my answer helps you

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3 years ago