Mustika Ratu
Individual Assignment
MM 5006: Business Economics
Lecturer : Mrs. Ana Noveria
By :
Widia Mulyani
29112448
MBA YP48 B
Magister Administrasi Bisnis - Sekolah Bisnis Manajemen
Institut Teknologi Bandung
2013
Question
10. In their volume Consumer Demand in the United States: Analyses and Projection (Cambridge, Mass: Harvard University Press, 1970), p.119, H.S. Houthakker and L.D Taylor presented the following results for their estimated demand equation for local bus service over the period from 1929 to 1961 (excluding the 1942 through 1945 war years) in the United States.
Qt = 22.819 + 0.0159 Xt – 0.1156 Pt – 86.106 St – 0.9841 Dt
Qt = per capita personal consumption expenditures on bus transportation during year t.
Xt = total per capita consumption expenditure during year t.
Pt = relative price of bus transportation in year t.
St = car stock per capita in year t.
Dt = Dummy variable to separate pre-from post-world war 2 years: Dt = 0 for years 1929 to 1941, and Dt = 1 for years 1946 to 1961.
a. Evaluate the sign and values of the coefficient.
Qt = 22.819 + 0.0159 Xt – 0.1156 Pt – 86.106 St – 0.9841 Dt
From the estimated demand equation for local bus service above indicate that:
1% increase in total per capita consumption expenditure (Xt) would increase 0.0159% per capita personal consumption expenditures on bus transportation.
1% increase in relative price of bus transportation (Pt) would decrease 0.1156% per capita personal consumption expenditures on bus transportation.
1% increase in car stock per capita (St) would decrease 86.106% per capita personal consumption expenditures on bus transportation.
1% increase in Dummy variable (Dt) would decrease 0.9841% per capita personal consumption expenditures on bus transportation.
The Value of the Durbin –Watson (D-W) statistic indicates that the hypothesis of no autocorrelation cannot be rejected.
b. Evaluate the statistical significant of the coefficients and the explanatory power of
MM 5006: Business Economics
Lecturer : Mrs. Ana Noveria
By :
Widia Mulyani
29112448
MBA YP48 B
Magister Administrasi Bisnis - Sekolah Bisnis Manajemen
Institut Teknologi Bandung
2013
Question
10. In their volume Consumer Demand in the United States: Analyses and Projection (Cambridge, Mass: Harvard University Press, 1970), p.119, H.S. Houthakker and L.D Taylor presented the following results for their estimated demand equation for local bus service over the period from 1929 to 1961 (excluding the 1942 through 1945 war years) in the United States.
Qt = 22.819 + 0.0159 Xt – 0.1156 Pt – 86.106 St – 0.9841 Dt
Qt = per capita personal consumption expenditures on bus transportation during year t.
Xt = total per capita consumption expenditure during year t.
Pt = relative price of bus transportation in year t.
St = car stock per capita in year t.
Dt = Dummy variable to separate pre-from post-world war 2 years: Dt = 0 for years 1929 to 1941, and Dt = 1 for years 1946 to 1961.
a. Evaluate the sign and values of the coefficient.
Qt = 22.819 + 0.0159 Xt – 0.1156 Pt – 86.106 St – 0.9841 Dt
From the estimated demand equation for local bus service above indicate that:
1% increase in total per capita consumption expenditure (Xt) would increase 0.0159% per capita personal consumption expenditures on bus transportation.
1% increase in relative price of bus transportation (Pt) would decrease 0.1156% per capita personal consumption expenditures on bus transportation.
1% increase in car stock per capita (St) would decrease 86.106% per capita personal consumption expenditures on bus transportation.
1% increase in Dummy variable (Dt) would decrease 0.9841% per capita personal consumption expenditures on bus transportation.
The Value of the Durbin –Watson (D-W) statistic indicates that the hypothesis of no autocorrelation cannot be rejected.
b. Evaluate the statistical significant of the coefficients and the explanatory power of