Question 1. A Taiwan electronics company exports personal computers (PCs) to the U.S. Their PC sales (in thousands) over the past five years are given below:
Year Sales
1 6
2 9
3 13
4 15
5 20
What is the regression equation if the company wants to predict sales?
a.Y = 2.4 + 3.4X
b.Y = 12.6 + 3.5X
c.Y = 2.4A + 3.4B
d.Y = 3.4 + 2.4X
e.Y = 20 + 3.5X
Question 2. Average weekly claims for unemployment insurance, money supply and the index of stock prices are all examples of
a.leading indicators
b.coincident indicators
c.lagging indicators
d.none of the above
Question 3. Among the advantages of the least-squares trend analysis techniques is
a.the ease of calculations
b.relatively little analytical skill required
c.its ability to provide information regarding the statistical significance of the results
d.all of the above.
Question 4. An increase in demand:
a.causes the demand curve to shift to the left.
b.means consumers are willing and able to buy more at any price.
c.creates a surplus at the original price.
d.could be caused by an increase in the price of a complementary good.
Question 5. Which of the following is a microeconomic concern?
a.Whether Microsoft is a monopoly or not.
b.Whether a new governmental policy is inflationary or not.
c.The effect that a new "polict action" such as Kosovo will have on national income.
d.Whether government can implement a policy that will eliminate unemployment.
Question 6. Which of the following is a macroeconomic concern?
a.The wage rates of electricians in Kansas City.
b.The effects of agricultural price supports on the income of farmers.
c.How profits are maximized by a firm.
d.The causes of unemployment in the United States.
Question 7. What is the major problem in projecting with a trend line?