In this fórum you have to make two different post: * Post 1: Answering the diffe
ID: 3310331 • Letter: I
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In this fórum you have to make two different post: * Post 1: Answering the different questions of the topic discussion below * Post 2: comment if you agree or disagree with the answer on the post 1 of any of your colleagues. Choose a colleague whose post has not been commented at that moment p.s: remember that you have one week from the day of webinar to answer the forum question otherwise it will not be graded Topic discussion A telephone cable manufacturer A for fiber internet want to predict the demand for fiber from the major telephone Company using the data for the period 1980 -1995. The variables used are: ·Y = Demand for cable in Million Paired Feet ·X2 = Gross National Product, Billions of $ ·X3 -New Houses. Thousands of Units ·X4 Unemployment Rate, Percent * X5 Mortgage Interest Rate ·Xs = customer Line Gains, Percent ·X7 = Level of Prices of telephone cable manufacturer B (competition) ·X8 = Average Level of Prices of the main internet providers of the country You are considering the following model What are the expected signs of the parameters and why?Explanation / Answer
Y = Demand for cable in Million Paired Feet
X2 = Gross National Product, Billions of $
X3 = New Houses, Thousands of Units
X4 = Unemployment Rate, Percent
X5 = Mortgage Interest Rate
X6 = Customer Line Gains, Percent
X7 = Level of Prices of telephone cable manufacturer B (competition)
X8 = Average Level of Prices of the main internet providers of the country
Demand for cable in Million Paired Feet(y)
here x2 is gross national product so if GNP decrease then demand is increase so 2 is negative.
if x3=new houses increase then demand of cables also increase so 3 is possitive.
if x4=unemployment rate decreases then demand will increase so 4 is negative.
if x5=Mortgage Interest Rate is decrease then damand will increase so 5 is negative.
if X6 = Customer Line Gains, Percent is increase then demand will increase so 6 is possitive.
if X7 = Level of Prices of telephone cable manufacturer B is increases so damand of our product increases .so 7 is possitive.
if X8 = Average Level of Prices of the main internet providers of the country decreases then demand increase. 78is negative. 1 is y intersept so its possitive sign.
model is Yi = 1 - 2X2t + 3X3t - 4X4t - 5X5t + 6X6t + ut.
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