ECO550 MIDTERM PART 2

Question: #968

PSY 870: Module 7 Problem Set

Optimism and Longevity
A cancer specialist from the Los Angeles County General Hospital (LACGH) rated patient optimism in 20- to 40-year-old male patients with incurable cancer in 1970. In 1990, the researcher examined hospital records to gather the following data:
•Socioeconomic status (1–7 rating of occupation; higher ratings indicate higher levels of SES)
•Age in 1970
•Optimism in 1970 (1–100 rating, higher scores indicate higher levels of optimism)
•Longevity (years lived after the 1970 diagnosis)
Using the SPSS data file for Module 7 (located in Topic Materials), calculate a simultaneous multiple regression with SES, age, and optimism as the independent variables and longevity as the dependent variable.
1.Do the independent variables correlate statistically significantly and practically with the dependent variable?
2.Is collinearity between the independent variables a concern?
3.What is the R and adjusted R-square for all independent variables entered simultaneously?
4.What variable(s) provide a significant unique contribution(s)?
5.Compose a results section for this statistical analysis.

Solution: #972

ECO550 MIDTERM PART 2

Question 1

Time-series forecasting models:

Answer

are useful whenever changes occur rapidly and wildly

are more effective in making long-run forecasts than short-run forecasts

are based solely on historical observations of the values of the variable being forecasted

attempt to explain the underlying causal relationships which produce the observed outcome Question 2

Smoothing techniques are a form of ____ techniques which assume that there is an underlying pattern to be found in the historical values of a variable that is being forecast.

Answer

opinion polling

barometric forecasting

econometric forecasting

time-series forecasting

Question 3

Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?

Answer

time-series forecasting techniques

barometric techniques

survey techniques and opinion polling

econometric techniques

input-output analysis

Question 4

The type of economic indicator that can best be used for business forecasting is the:

Answer

leading indicator

coincident indicator

lagging indicator

current business inventory indicator

optimism/pessimism indicator

Question 5

The forecasting technique which attempts to forecast short-run changes and makes use of economic indicators known as leading, coincident or lagging indicators is known as: Answer

econometric technique

time-series forecasting

opinion polling

barometric technique

judgment forecasting

Question 6

The use of quarterly data to develop the forecasting model Yt = a +bYt−1 is an example of which forecasting technique? Answer

Barometric forecasting

Time-series forecasting

Survey and opinion

Econometric methods based on an understanding of the underlying economic variables involved

Input-output analysis