QUESTION TWO (a) The table below shows the average wages in Kwachas per week of a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION TWO (a) The table below shows the average wages in Kwachas per week of a group of industrial workers during the year 1989-1996. The consumer price Index for the years with 1989 as base are shown below. i. ii. Average wage of workers (K) Consumer Price Index 119 100 107.6 133 144 106.6 157 107.6 175 116.2 184 118.9 189 119.8 194 120.2 Determine the real wages of workers during the year 1989-1996 as compared with their wages in 1989. Determine the purchasing power of a Kwacha for the year 1996 as compared to the year 1989. What is the significance of this result? (b) For the following data, verify that the 5 year weighted moving average with weights 1, 2, 2, 2, 1 respectively is equivalent to 4 year centred moving average: Year 1989 1990 1991 ii. 1992 1993 1994 1995 1996 Year 1994 1995 1996 1997 Sales (K) 5 3 7 6 (c) The forecast of a product for the first week of March was 200 units, whereas the actual demand turned out to be 220 units. i. Find the forecast for the second week of March by assuming the smoothing constant (a) as 0.35. Find the forecast for the third week of March if the actual demand of the second week is 210 units. i. QUESTION THREE (a) The actual demand of a product for 6 months are summarized in Table below: Actual Demand Values Demand (D₂) Month (1) 1 2 3 4 5 3 6 i. 300 450 700 1998 1999 2000 2001 2002 2003 2004 9 10 8 9 4 8 9 900 1200 Find three months weighted moving averages by assuming the weights W₁ = 0.15, W₂ = 0.36 and W₂ = 0.49. ii. Compute the mean forecast errors. iii. Compute the mean square error iv. Compute the mean absolute deviation. V. Mean absolute percent error (MAPE) (b) The table below gives the distribution for the number of heavy rainstorms reported by 330 weather stations in Zambia over one year period. 1400 Number of rainstorms (x) 0 1 Number of stations (f) 102 114 reporting x rainstorms 2 3 74 28 4 5 10 2 more than 5 0 Find the expected frequencies of rainstorms given by the Poisson distribution having the same mean and total as the observed distribution. ii. Use the distribution to test the adequacy of the Poisson distribution as a model for these data. QUESTION TWO (a) The table below shows the average wages in Kwachas per week of a group of industrial workers during the year 1989-1996. The consumer price Index for the years with 1989 as base are shown below. i. ii. Average wage of workers (K) Consumer Price Index 119 100 107.6 133 144 106.6 157 107.6 175 116.2 184 118.9 189 119.8 194 120.2 Determine the real wages of workers during the year 1989-1996 as compared with their wages in 1989. Determine the purchasing power of a Kwacha for the year 1996 as compared to the year 1989. What is the significance of this result? (b) For the following data, verify that the 5 year weighted moving average with weights 1, 2, 2, 2, 1 respectively is equivalent to 4 year centred moving average: Year 1989 1990 1991 ii. 1992 1993 1994 1995 1996 Year 1994 1995 1996 1997 Sales (K) 5 3 7 6 (c) The forecast of a product for the first week of March was 200 units, whereas the actual demand turned out to be 220 units. i. Find the forecast for the second week of March by assuming the smoothing constant (a) as 0.35. Find the forecast for the third week of March if the actual demand of the second week is 210 units. i. QUESTION THREE (a) The actual demand of a product for 6 months are summarized in Table below: Actual Demand Values Demand (D₂) Month (1) 1 2 3 4 5 3 6 i. 300 450 700 1998 1999 2000 2001 2002 2003 2004 9 10 8 9 4 8 9 900 1200 Find three months weighted moving averages by assuming the weights W₁ = 0.15, W₂ = 0.36 and W₂ = 0.49. ii. Compute the mean forecast errors. iii. Compute the mean square error iv. Compute the mean absolute deviation. V. Mean absolute percent error (MAPE) (b) The table below gives the distribution for the number of heavy rainstorms reported by 330 weather stations in Zambia over one year period. 1400 Number of rainstorms (x) 0 1 Number of stations (f) 102 114 reporting x rainstorms 2 3 74 28 4 5 10 2 more than 5 0 Find the expected frequencies of rainstorms given by the Poisson distribution having the same mean and total as the observed distribution. ii. Use the distribution to test the adequacy of the Poisson distribution as a model for these data.
Expert Answer:
Answer rating: 100% (QA)
QUESTION TWO a idetermine real wages of workers during the years 19891996 as compared with their wages in 1989 year Average wage of workers K Consumer price index Real wages 1989 119 100 119 1990 133 ... View the full answer
Related Book For
Macroeconomics Principles And Policy
ISBN: 9780324586213
11th Edition
Authors: William J. Baumol, Alan S. Blinder
Posted Date:
Students also viewed these accounting questions
-
The table below shows annual returns on Archer Daniels Midland (ADM) and Walmart. The last column of the table shows the annual return that a portfolio invested 50% in ADM and 50% in Walmart would...
-
The table below shows a mixed cash flow stream, except that the cash flow for year 3 is missing. Year 1 ....... $10,000 Year 2 ....... 5,000 Year 3 ....... Year 4 ....... 20,000 Year 5 ....... 3,000...
-
The table below shows the expected return and standard deviation for two stocks. Is the pattern shown in the table possible? Stock Beta Std. Dev 1 1.5 22% 2 0.9 3590
-
In Problems 5978, solve each equation in the complex number system. x 2 - 4 = 0
-
What is the relevant range? Discuss.
-
The Alaska plant produces two calculators and has two production departments: assembly and packaging. Information for the products is given below: The following table presents activity information...
-
For the following observed and expected frequencies: a. Compute the value of X2. b. How many degrees of freedom are there? c. Test the hypothesis that the distribution of the observed frequencies is...
-
On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC milling machine to Fletcher Bros., a new business that plans to fabricate utility trailers. To conserve...
-
12. [1 Marks]. Given three vectors a = (2,4,6), b = (-1,2,-5) and c = (4,3,-1). (a) Calculate a b (b) Calculate a x (b+c) (c) Calculate a. (bx c)
-
Suppose a researcher conducts an analysis of the relationship between cardiovascular disease and type II diabetes. The basic summary of the findings are presented in the following table. A) Describe...
-
Suppose a mutual fund maintains a portfolio with 2/3 of the investment weight in in the S&P 500 and 1/3 of the investment weight in a riskless investment with constant daily return of 1%. Letting...
-
Enron Online was the biggest e-commerce entity in the world, selling over 800 different products, such as: (a) Gas and electricity. (b) Weather derivatives. (c) Metal futures. (d) All of the above.
-
One of the signals of the understatement of expenses is the increase in expenses as a percentage of sales. True/False
-
Livent arranged for outside associates to purchase approximately $381,000 of tickets on personal __________ and make future ticket purchases using personal __________.
-
AHERFs failure to increase its reserve for bad debts caused it to understate its expenses and overstate its income. True/False
-
Livent also transferred __________ costs for shows, such as those for construction of theaters, to fixed asset accounts.
-
Differentiated Instruction in Adult Training: Define what differentiated instruction is and explain why it s essential in adult education and training. Diversity and Inclusion: Provide examples or...
-
A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables (y), the amount spent on promotion of the vegetables in local newspapers (x1)...
-
Explain why X - IM = (S - I) - (G - T). Now multiply both sides of this equation by 1 to get IM - X = (I - S) + (G - T) And remember that the trade deficit, IM - X, is the amount we have to borrow...
-
The federal budget for national defense has increased substantially to pay for the Iraq war. How would GDP in the United States have been affected if this higher defense spending led to? a. larger...
-
Find the equilibrium level of GDP demanded in an economy in which investment is always $300, net exports are always 2$50, the government budget is balanced with purchases and taxes both equal to...
-
To which types of services does the rule on contingent fees apply? Why?
-
In using a general model for making ethical decisions, the CPA should do all of the following except a. Gather or identify all the relevant facts about the situation that raises the ethical issue. b....
-
The issue of audit independence might be raised by the auditor's participation in management consulting engagements. Which of the following statements is most consistent with the profession's...
Study smarter with the SolutionInn App