MBA 701 Module 5 Self Assessment
Module 5 Self Assessment
Use the following regression results to answer the four questions below.
Dependent Variable: Q
Observations: 32
R2: 0.7547
F-ratio: 92.31
p-ratio on F: 0.0001
Variable Parameter Estimate Standard Error
L3 -0.0016 0.0005
L2 0.4000 0.0950
Question 1
Which of the following equations is derived correctly?
a. Q=−0.0016L3+0.4000L2+0.0005L+0.7547
b. AP=0.000533L2−0.1333L
c. MP=−0.0048L2+0.8000L
d. AP=−0.0032L2+0.8000L
Question 2
The coefficient estimates above are statistically significant at the 10% level.
a. True
b. False
Question 3
The slope of the AP curve is found by ; AP is maximized at units of
labor.
a. −0.0032L+0.4
L=125
b. −0.0032L2+0.2L
L=62.5
c. −0.0096L+0.8
L=83.33
d. −0.0016L2+0.4L
L=250
For this problem I chose a topic that is very relevant to my life...
, Here are some historical prices of Oreos per pound, along with the "food at home" category
of the CPI:
Year $/lb (Dollars per pound)
1954 $0.46
1964 $0.39
1974 $0.59
1984 $1.43
1994 $1.99
2004 $2.99
2014 $5.02
2018 $3.35
Question 4
The 1964 price is about one-tenth the 2018 price; the most likely reason why there is such a
large disparity is because
a. the availability of cookies and cream has increased dramatically since 1964.
b. Oreos are in a highly competitive industry and the company has to keep prices low to
compete with other cookie manufacturers.
c. demand has declined significantly, so the company needs to charge much higher prices
to make a profit.
d. the value of a single dollar was much larger in 1964 than in 2018.
Question 5
The nominal price in 2004 ($2.99) is less than the nominal price in 2018 ($3.35); how do the
real prices compare?
a. The difference between the real prices is equal to the difference between the nominal
prices.
b. The 2004 real price is greater than the 2018 real price.
c. The 2004 real price is less than the 2018 real price.
d. The difference between the real prices is even greater than the difference between the
nominal prices.
Question 6
The real price, using year 2018 dollars, of a pound of Oreos in 1974 is .
Select one:
Module 5 Self Assessment
Use the following regression results to answer the four questions below.
Dependent Variable: Q
Observations: 32
R2: 0.7547
F-ratio: 92.31
p-ratio on F: 0.0001
Variable Parameter Estimate Standard Error
L3 -0.0016 0.0005
L2 0.4000 0.0950
Question 1
Which of the following equations is derived correctly?
a. Q=−0.0016L3+0.4000L2+0.0005L+0.7547
b. AP=0.000533L2−0.1333L
c. MP=−0.0048L2+0.8000L
d. AP=−0.0032L2+0.8000L
Question 2
The coefficient estimates above are statistically significant at the 10% level.
a. True
b. False
Question 3
The slope of the AP curve is found by ; AP is maximized at units of
labor.
a. −0.0032L+0.4
L=125
b. −0.0032L2+0.2L
L=62.5
c. −0.0096L+0.8
L=83.33
d. −0.0016L2+0.4L
L=250
For this problem I chose a topic that is very relevant to my life...
, Here are some historical prices of Oreos per pound, along with the "food at home" category
of the CPI:
Year $/lb (Dollars per pound)
1954 $0.46
1964 $0.39
1974 $0.59
1984 $1.43
1994 $1.99
2004 $2.99
2014 $5.02
2018 $3.35
Question 4
The 1964 price is about one-tenth the 2018 price; the most likely reason why there is such a
large disparity is because
a. the availability of cookies and cream has increased dramatically since 1964.
b. Oreos are in a highly competitive industry and the company has to keep prices low to
compete with other cookie manufacturers.
c. demand has declined significantly, so the company needs to charge much higher prices
to make a profit.
d. the value of a single dollar was much larger in 1964 than in 2018.
Question 5
The nominal price in 2004 ($2.99) is less than the nominal price in 2018 ($3.35); how do the
real prices compare?
a. The difference between the real prices is equal to the difference between the nominal
prices.
b. The 2004 real price is greater than the 2018 real price.
c. The 2004 real price is less than the 2018 real price.
d. The difference between the real prices is even greater than the difference between the
nominal prices.
Question 6
The real price, using year 2018 dollars, of a pound of Oreos in 1974 is .
Select one:
