5. Find the predicted impact on production (Y) if inflation rises by 3 percentage points...
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5. Find the predicted impact on production (Y) if inflation rises by 3 percentage points (dX1 = 3) and Quantity of Inputs on hand rises by 1.000 units. (Refer to model 2) 15 points 6. You suspect that location of the firm is another determinant that affects the sales volume and in turn production. If you add LOCATION in the first model and then obtain the following: Beta (Location) - 100.04 & st.dev = 25.05; what would you say about this regressor? Does it belong in this model? Explain. 15 pts !!! Location is a dummy coded as 1 if the firm is in the city center vs. peripherical area. 5. Find the predicted impact on production (Y) if inflation rises by 3 percentage points (dX1 = 3) and Quantity of Inputs on hand rises by 1.000 units. (Refer to model 2) 15 points 6. You suspect that location of the firm is another determinant that affects the sales volume and in turn production. If you add LOCATION in the first model and then obtain the following: Beta (Location) - 100.04 & st.dev = 25.05; what would you say about this regressor? Does it belong in this model? Explain. 15 pts !!! Location is a dummy coded as 1 if the firm is in the city center vs. peripherical area
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