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If the price of a portrait during month 21 is $10, what would you predict for sales in month 21? Does there appear to be a problem with autocorrelation of the residual? Explain your answer.

Multiple Regression For this assignment, you are required to complete Problem 64 using the appropriate Excel file templates. Once complete, post your Excel Document showing all work. 23-64) Let Yt be the sales during month t for a photography studio, and let Pt be the price charged for portraits during month t. The data are […]

Define the set of instruments used to estimate the model. Justify the reasons of your selected set of instruments.

Use the data provided to answerALLthe questionsbelow.Q1. Plot the time series of all the variables. Describe and discuss dynamics of the data. How does money supply dynamics compare to the other three variables? [5 Marks]Q2. Estimate thestatic demand for money equation below:π‘™π‘šπ‘‘=𝛽0+𝛽1𝑖𝑛𝑓𝑑+𝛽2𝑙𝑦𝑑+𝛽3π‘‘π‘π‘–π‘™π‘Ÿπ‘Žπ‘‘π‘’π‘‘+𝑒𝑑(1)where:π‘™π‘šπ‘‘isnatural log of real money supply, 𝑙𝑦𝑑is the natural logarithm of real gdp, 𝑒𝑑is […]

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